US 10-year Treasury yields, S&P 500 Futures portray risk-on mood

US 10-year Treasury yields extend Friday’s pullback from yearly top, S&P 500 Futures bounces off monthly low.
Vaccine, stimulus updates battle fresh lockdown in New Zealand and downbeat China PMIs.
US ISM Manufacturing PMI, risk catalysts should be watched carefully.

Anil Panchal FXStreet

US bonds and stock future extend the latest shift in movement during the early Asian trading on Monday. In doing so, the 10-year Treasury yields dropped 6.8 basis points (bps) to 1.39% whereas the S&P 500 Futures print 0.70% intraday gains while defying the previous two-day downtrend.

Looking for the clues, chatters concerning the fiscal relief from the UK and the US governments join the coronavirus (COVID-19) vaccine news could be traced. After US President Joe Biden’s $1.9 trillion stimulus crossed the House to reach the Senate during Friday, talks spiraled that UK Chancellor Rishi Sunak will unveil five billion pounds of relief to the British business houses. It should also be noted that the Financial Times (FT) came out with the news suggesting Britain’s faster vaccine promises faster economic revival and fewer tax rises for the UK.

On the other hand, the US Food and Drug Administration (FDA) approved Johnson and Johnson’s one-shot covid vaccine for emergency use and helped the world to quickly overcome the pandemic.

Alternatively, New Zealand’s fresh lockdown, as well as fears of inflation, join the nine-month low of China’s NBS Manufacturing PMI to test the market optimism.

Although month-start activity numbers can offer immediate direction to traders, major attention will be given to the stimulus news and inflation headlines while following Treasury moves.

Read: US ISM Manufacturing PMI February Preview: Will business catch up with consumers?

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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