Is the risk mood starting to shift?

DAX 21-10

The DAX is up by 0.6% now with other regional stocks also posting some decent gains as we move along the session. The UK FTSE is up by 0.4% currently.

That said, gains in the Eurostoxx main index are more measured with US futures also not getting all too hyped up for the time being.

S&P 500 futures are only up by 0.2% still at the moment.

There is a bit of a lift in sentiment from bond yields but it hardly is translating into a massive shift towards risk-on territory for now.

10-year Treasury yields are up by 3 bps to 1.785% and that is keeping USD/JPY at the highs around 108.57 - though the pair still sits <30 pips range for the day.

I wouldn't say that risk trades are going to start rallying from here but there is some mild optimism to start the week, though investors are likely to reserve some caution still.