S&P 500 Futures trim early Asian gains as Treasury yields firm up
|- S&P 500 Futures fizzle upside momentum as risks consolidate.
- US 10-year Treasury yield stay firm around February 2020 high marked on Friday.
- Yellen tried to placate bond bears but failed, Biden praised talks with Asia-Pacific allies.
- Vaccine optimism dwindles, China data came in positive, US Pres. Biden’s speech eyed.
S&P 500 Futures ease from intraday high, currently up 0.10% around 3,936, amid early Monday. In doing so, the risk barometer fails to justify the recent pick-up in the US Treasury yields amid a quiet Asian session.
US 10-year Treasury yields regain 1.63%, highest since early February 2020, during the recent rise. The bond bears eased controls earlier in Asia after US Treasury Secretary Janet Yellen again rejected fears of reflation despite expecting a short-term run-up in rates.
Even so, upbeat comments from US President Joe Biden and AstraZeneca’s rejection of claims that the vaccine causes blood clotting to seem to favor the mood. Also on the positive side could be China’s upbeat Retail Sales and Industrial Production details suggesting the notable recovery in the world’s second-largest economy.
Furthermore, US stimulus and hopes of more fiscal relief join chatters that Tokyo is not looking for an extension of the virus-led emergency to add to the risk-on mood.
It should be noted though that US Secretary of State Antony Blinken’s visit to Asia, amid the fresh Sino-American tussle probe the risks.
Amid these plays, Asia-Pacific shares trade mixed whereas commodities stay mildly bid. Further, the US dollar index (DXY) keeps Friday’s recovery moves around 91.67.
Looking forward, investors will keep their eyes on US President Biden’s appearance on the ABC for fresh impulse amid a light calendar. Though, major attention will be given to this week’s FOMC meeting.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.