Risk remains in a state of flux as the market awaits further clues on the week
Equities are faring better today after a softer session yesterdayUS futures are keeping higher as we look towards the session ahead, with European investors set to be greeted by a more positive mood in Asia today.
S&P 500 futures are up 0.4% and Nasdaq futures are up 0.7% after the drop yesterday.
As much as the focus has been on the bond market, Treasuries haven't quite offered much after the surge higher last week as they remain near unchanged levels on the week closer to 1.40% as we look towards European morning trade.
There have been short bursts higher this week but they fizzled in the end, with Fed officials still seemingly rather sanguine about recent developments - at least the ones we have heard so far since the start of the new week.
Other major central banks have voiced some disapproval (RBA, BOJ, ECB) on the recent yields rise but the market is still largely waiting on the Fed to produce any form of coherent or clear response to how they fell about the situation.
Even though the lack of concern may be interpreted as a green light for yields to stay the course, I reckon we won't really get any firm commitment until after Fed chair Powell's speech tomorrow. That will be the main highlight in the second half of the week.