S&P 500 Futures snap four-day downtrend, US 10-year Treasury yields refresh yearly top on upbeat sentiment

  • S&P 500 Futures regain 3,900, up 0.20% intraday, to rise for the first time in a week.
  • US 10-year Treasury yields jump to the fresh high since February 2020.
  • Comments from Chinese diplomat join virus, vaccine optimism to back the mood amid a light calendar.

Risk-on mood gains momentum during early Monday as global rating agencies sound cautiously optimistic for Pacific majors while Chinese diplomat highlighted areas of cooperation with the US. Also favoring the mood could be the hopes of US covid relief package and easing of the coronavirus (COVID-19)-led activity restrictions in the UK.

While portraying the sentiment, S&P 500 Futures rise for the first time in five days, currently up 0.28% to 3,915, whereas the US 10-year Treasury yields rally to the fresh high in 12 months by rising 3.2 basis points (bps) to 1.3770%.

Following Fitch’s no change in Australia’s ‘AAA’ credit rating, S&P raised New Zealand’s rating to ‘AA+’ from ‘AA’ in the latest analysis. The Pacific nations have recently witnessed snap lockdown measures amid the virus resurgence and hence these news rebuild optimism in Australia and New Zealand, which in turn backs the overall upbeat sentiment.

Elsewhere, the UK is determined to reopen schools by March 08, per Sky News, amid receding virus statistics and success in vaccinations. British PM Boris Johnson also lauded the immunization by preponing the deadline for all the adults and above-50 UK locals from September to July. It should be noted that Israel is the strongest contestant that won over the virus with a heavy vaccination drive and recently backed Pfizer for an over 85% success ratio.

On the contrary, the Fed’s fear of downside risks to the US business and the Sino-American tussle try to tame the market bulls, but fail off-late.

Amid these plays, Asia-Pacific stocks also remain positive while prices of gold and AUD/USD, the traditional risk barometer, are up over 0.30% by press time.

Considering the lack of major data/events, risk news is likely to determine the market mood.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!