Yields keep higher, stocks more subdued on the session



Treasury yields are continuing to keep higher on the session, with 10-year yields up 3.4 bps to 1.735%. Meanwhile, 30-year yields are up almost 4 bps to 2.126% as the post-FOMC meeting minutes selloff holds.

The chart above remains a key one to watch as 10-year yields are close to testing resistance at 1.75% and its 200-day moving average (blue line) at 1.79%. That is yet another critical region before a potential surge towards the December 2019 highs around 1.97% and the 2.00% mark.

In the equities space, European indices are still largely more subdued. The majors are down by roughly 1% so that is keeping risk sentiment more on the defensive for the time being. Elsewhere, US futures are faring slightly better from earlier but tech remains a notable laggard. Dow futures are up 0.3%, S&P 500 futures flattish, while Nasdaq futures are down 0.3%.

Meanwhile, the dollar is keeping steadier for the most part alongside the yen though earlier gains have been trimmed somewhat. AUD/USD is down to 0.7170 but off earlier lows of 0.7145. USD/CAD is up 0.2% to 1.2772 but off earlier highs of 1.2810.

In the commodities space, gold is still pinned lower just below $1,800 while oil has seen an impressive turnaround to be up over 1% to just below $79 at the moment.

Looking ahead, US weekly jobless claims will be one to watch. Otherwise, expect the focus to stay on the risk mood and bond yields before we get to the NFP release tomorrow.



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