- US 10-year bond yields stay firmer around the March 2020 peak.
- American stimulus hopes propel the bulls despite US-Iran tension, mixed news at covid and vaccine fronts.
- A light calendar in Asia, thin news feeds keep the previous risk-on mood intact.
While portraying market optimism, US bond yields remain on the front foot during the early Monday. This could be well witnessed in the US 10-year Treasury yields that probe March 2020 top and marks a six-day winning streak.
Following US Senators’ push to the key aid package, comments from US Treasury Secretary Janet Yellen and President Joe Biden began the week on a firmer note. The mood got extra help after the Washington Post suggests a $3,000 per child benefit.
The bond yields refreshed multi-day high on Friday after US Democratic Party members managed to push President Biden’s $1.9 covid relief package through the Senate. The much-awaited stimulus proposal returns to Congress for further details.
Also favoring mood could be US President Biden’s push to open the schools in a safe way as well as the reduction in China’s coronavirus (COVID-19) numbers to zero for the first time in 2021.
Alternatively, US rejection to take back Iran sanctions and Tehran’s signals to go ahead with their arms embargo if Washington doesn’t return to the 2015 agreement challenge the sentiment. It should be noted that the second case of the virus in Melbourne challenges the authorities while the UK-EU tension also offers background music to the risks. Furthermore, a study, conveyed by the Financial Times (FT), showing Oxford-AstraZeneca vaccine’s inability to tame the South-African variant of the COVID-19 exert additional pressure on the risks.
Moving on, traders will keep their eyes on US stimulus news and vaccine developments for fresh impulse.
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.