Equities are higher alongside Treasury yields
- Nikkei +0.7%
- Shanghai Composite +1.7%
- S&P 500 futures +0.5%
- US 10-year yields up 2.5 bps to 1.58%
- US 30-year yields up 3 bps to 2.065%
Of note, some added policy support from China is helping to feed into the move higher in mainland equities but the overall risk mood remains more upbeat even as we got the week underway during the early morning.
If the optimism is largely related to Trump talking up trade relations with China, then markets will surely be set for more disappointment down the road. At this juncture, I'm not convinced that anything has changed ahead of the proposed talks in September.
The currency market isn't really buying into the positive vibes just yet though - even with higher yields today, the yen is barely changed thus far.
Major currencies remain little changed overall ahead of European trading and I reckon that points to some hints of caution that the more optimistic risk mood this morning may not extend/last the course throughout this week.
