Bond yields climb as US futures steady before CPI

Bloomberg

Bond yields climbed and US
futures steadied as traders awaited inflation data, a Treasury auction and corporate earnings to assess the market outlook. Bitcoin hit a record.
The yield on the 10-year US benchmark headed back toward 1.7%, with rates across Europe rising in sympathy. Gains in European shares were led by tech shares, while most US stock futures were little changed.
The US consumer-price data is being closely watched as the Federal Reserve has signalled it’s prepared to let the economy run hot to guide the rebound from the pandemic. Although policymakers at the US central bank expect a bump in consumer prices to be short-lived, faster consumer price index (CPI) threatens not only bonds but the stocks with long-term
horizons such as tech.
“A jump in US CPI is well flagged, but it should be a wake-up call to what we think will be stickier inflation in the coming months, if not years,” strategists at ING Groep NV including Padhraic Garvey wrote in a client note. “This would render the Fed’s position
increasingly stretched.”
“Policy-sensitive” five-year securities way be most vulnerable to a deeper selloff, according to the ING strategists. The Treasury plans to auction 30-year bonds after sales of three- and 10-year notes attracted
decent demand.
Meanwhile, Bitcoin jumped to an all-time high as the mood in cryptocurrencies turned bullish before Coinbase Global Inc. goes public. Oil rises
towards $60 a barrel.
Meanwhile, banks and financial firms begin reporting first-quarter earnings, including JPMorgan Chase & Co, Citigroup Inc, Bank of America Corp, Morgan Stanley, Goldman Sachs Group Inc.
Futures on the S&P 500 Index were little changed at 9:40 am London time and the Stoxx Europe 600 Index rises to as much as 0.2%.
While the MSCI Asia Pacific Index gained 0.2%, the MSCI Emerging Market Index was
little changed.
The Bloomberg Dollar Spot Index was little changed and the euro sinks 0.1% to $1.1898.
While the British pound rises 0.1% to $1.375, the onshore yuan was little changed at 6.548 per dollar and the Japanese yen was little changed at 109.34 per dollar.
The yield on 10-year Treasuries jumped two basis points to 1.69% and the yield on
two-year Treasuries gained one basis point to 0.17%.
Germany’s 10-year yield rises one basis point to -0.29%.
While Japan’s 10-year yield decreased less than one basis point to 0.107%, Britain’s 10-year yield increased one basis point to 0.795%.
West Texas Intermediate crude climbed 0.2% to $59.82 a barrel and Brent crude increased 0.3% to $63.46 a barrel. Gold weakened 0.3% to $1,727.52 an ounce.