- NZD leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.6%
- US 10-year yields down 2.9 bps to 4.705%
- Gold up 0.3% to $1,987.87
- WTI crude up 1.4% to $81.56
- Bitcoin flat at $35,431
The reversal rally in bonds yesterday was the main story and the reverberations continue to be felt today, with yields also looking rather sluggish in European trading.
10-year Treasury yields are down at the lows near the 4.70% now and that is dragging the dollar down with it as risk trades continue to soar. The squeeze continues and will likely stay the course until we get to the US jobs report tomorrow.
Equities were cautiously optimistic early on before eventually running with a full on rally, as European indices are now clocking in 1.5% to 1.9% gains across the board. S&P 500 futures were up only 0.2% in the handover from Asia, but are now seen up 0.6% or 26 points on the day.
EUR/USD moved up from 1.0590 to 1.0630 levels while AUD/USD is largely holding gains at around 0.6430-40 levels on the day, up by 0.6%. The dollar is the laggard with USD/JPY trailing by 0.4% to 150.30 levels although not much changed from the end of Tokyo trading.
It’s all about the question if this is the top in yields and if so, that could as well signal a top in the dollar rally over the last few months.