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Bloomberg
US Treasury yields rise with stocks as the reflation trade gained momentum amid President Joe Biden’s big spending plans on the heels of ramped-up vaccine efforts.
European stocks opened higher, led by banks and miners, as investors weighed prospects of a stronger-than-expected global recovery led by the US. Equity-index futures were mixed as traders assessed the fallout from the implosion of Archegos Capital Management.
Ten-year Treasury yields rose to 1.77%, and the five-year rate hit its highest point in 13 months, before Biden unveils a further $3 trillion of stimulus with a tilt towards infrastructure. The US reached a record three-day stretch of
10 million shots over the weekend, according to the Bloomberg Vaccine Tracker, and plans to offer inoculations to 90% of adults.
Investors have been focusing on the strength of the recovery and inflation risks as governments step up spending to spur growth. Positive news on vaccines is helping risk appetite, with a real-world study from Pfizer Inc. and Moderna Inc. showing their doses effectively prevented coronavirus infections, US government
researchers said.
Oil fluctuated as traders looked forward to this week’s Opec+ meeting, with speculation that renewed demand concerns will push the group to keep production in check. Meanwhile, the Suez Canal reopened to traffic after the container ship blocking it was tugged free.
Meanwhile, US president Joe Biden is expected to unveil his infrastructure programme on Wednesday.
Futures on the S&P 500 Index decreased 0.1% as of 9:16 am London time and the Stoxx Europe 600 Index gained as much as 0.5%.
While the MSCI Asia Pacific Index dipped 0.1%, the MSCI Emerging Market Index rises by around 0.5%.
The Bloomberg Dollar Spot Index jumped 0.2% and the euro declined 0.2% to $1.1738.
While the British pound dipped 0.1% to $1.3755, the onshore yuan was little changed at 6.571 per dollar. The Japanese yen weakened 0.4% to 110.26 per dollar.
The yield on 10-year Treasuries rise six basis points to 1.77% and the yield on two-year Treasuries rise one basis point to 0.15%. While Germany’s 10-year yield climbed five basis points to -0.27%, Britain’s 10-year yield gained five basis points to 0.839%. Japan’s 10-year yield gained two basis points to 0.091%.
West Texas Intermediate crude declined 0.2% to $61.41 a barrel and Brent crude decreased 0.2% to $64.86 a barrel. Gold weakened 0.8% to $1,698.31 an ounce.