Risk tones remain more defensive but not quite as much as earlier in the day

A snapshot of the risk barometers in the market reveals that the softer risk sentiment is still prevailing but things are slightly calmer in European trading so far:

  • 10-year Treasury yields down 2.2 bps to 1.275%; low hit 1.248%
  • WTI crude down 0.9% to $67.80; low hit $66.83
  • S&P 500 futures down 0.2% to 4,453; low hit 4,445

In FX, the dollar is keeping steadier but softer against the yen as Treasury yields are still marked lower. USD/JPY sits at 109.36, just off lows of 109.31 on the day.

Commodity currencies are still the ones pressured with USD/CAD up close to 1.2540, just off earlier highs of 1.2553. Meanwhile, AUD/USD is still down 0.4% to 0.7337 with the low today seen at 0.7332 during the earlier parts of the session.

The euro and pound are little changed overall, keeping in narrower ranges thus far.

Delta variant concerns is the main thing that is posing a risk to broader markets, after having seen the mood dampened by weaker US consumer sentiment on Friday.

Adding to that is softer data from China today, Australia's virus situation worsening, and Japan set to extend state of emergency measures to mid-September.