Little on the agenda in Europe today
The surge higher in Treasury yields yesterday caused some jitters in US equities, as tech stocks were routed once again with the Nasdaq falling 3%.
Treasuries are keeping calmer so far today as the steepening of the yield curve abates for now, with the 2y-10y spread slipping to 153 bps after having hit 160 bps yesterday.
10-year yields are down a little over 1 bps to 1.697% but still keeping higher from before the FOMC meeting on Wednesday.
Elsewhere, the dollar firmed across the board on more risk-off sentiment yesterday with oil prices plunging heavily in particular - falling by 8% at one point.
WTI crude is keeping more stable today, up 0.4% to $60.25 at the moment.
There's still plenty for market participants to tinker and ponder upon now that we've moved past the slew of central bank meetings this week.
While Treasuries are still staring down a path of least resistance that leads it lower i.e. higher yields, the pace of the move yesterday may be one a little too far, too fast.
That could hint that we may be closer to a short-term top in yields unless economic data proves to be more supportive of the market's view on rates moving forward.
I wouldn't expect the selloff in risk trades to be too persistent as such but given that yields will keep higher in the bigger picture, value stocks should continue to outperform growth (tech) in the equities space at least.
0700 GMT - Germany February PPI figures
Prior release can be found here. An indication of price pressures in the German economy, though very much a lagging indicator.
Just be aware that BOJ governor Kuroda will also be speaking at 0630 GMT in the usual press conference following the central bank policy decision earlier.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
