Markets Daily: Yields Retrieve and Stocks in Asia Set to Open Higher

Futures in Asia are pointing to gain to the start of Tuesday with Australia opened 0.4% higher. The lower yields overnight sent US equities higher with the Nasdaq leading the gains, up 1.23%. The Dow Jones Industrial Average and S&P500 both traded followed, up 0.32% and 0.7% respectively. Meanwhile, small-cap was the underperformer overnight. 

Long-term bond yields dipped on Monday ahead of a series of the auction this week. The US Treasury will sell $60 billion of two-year notes on Tuesday; $61 billion of five-year notes on Wednesday; and $62 billion of seven-year notes on Thursday. The US 2-year yields were flat near 0.15%, while the US 10-year yields fell from the 14-month highs to near 1.69%.

The dollar slipped against major currencies on Monday. EURUSD rose from lows around $1.1875 to highs near $1.1947. AUDUSD rose from lows around $0.7705 to highs near $0.7757. Japanese yen (USDJPY) rose slightly against the dollar from near 108.96 yen per dollar to near 108.76 yen per dollar.

On the commodity trading side, global oil gained on Monday as the continuation of vaccine rollouts boded well for stronger oil demand. Brent oil rose 0.47% to $64.28 per barrel. WTI crude rose 0.62% to $61.3 per barrel.

Gold was flat trading near $1740 an ounce. Iron ore fell 2.4% to near $154.35 a tonne.

Key events this week:

–  US Fed Chair Powell Speak (Tuesday)

– EIA crude oil inventory report (Wednesday)

– US personal income and spending (Friday)

– Euro Summit (Friday)

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