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.

Anil Panchal FXStreet

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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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