- US 10-year yields rise to fresh 11-month top, 30-year coupon jumps to mid-February 2020 levels.
- US stimulus chatters, vaccine developments supersede expected US-Iran tussle.
US Treasury yields got a warm welcome after the extended weekend during Tuesday’s Asian session. The risk barometers mainly cheer the coronavirus (COVID-19) improvement and vaccine news while also paying attention to the optimism relating to the US covid relief package.
In doing so, the 10-year Treasury yields rise to 1.25%, the highest since March 2020, whereas the 30-year Treasury yields jump to the one-year top while taking the bids near 2.04% by press time.
Although China’s absence and a light calendar in Asia, except for the RBA minutes, challenge market moves, the recently upbeat study showing improvement in Israel’s covid infections and the UK’s lowest count since October favor the mood. Also on the positive side is the British capacity to jab 15-million Britons as well as preparations of mass immunization in Australia, New Zealand and Japan, up for this week.
With the market optimism strong enough to tame the news of the death of a US employee in Iraq, risks remain positive, which also help S&P 500 Futures to mark half a percent of gains by press time.
Looking forward, a light calendar in Asia becomes reality for today as well. The same will join China’s absence to offer dull markets going forward.
Also read: AUD/USD: Run-up to yearly top eyes RBA Meeting Minutes below 0.7800
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