Higher Treasury yields continue to play its part in underpinning the dollar today, as we continue from where we left off on Friday last week. The only difference is that equities aren't as enthusiastic but the technical picture for stocks is looking optimistic (see the charts below). Here's a snapshot of the Treasuries space at the moment:
- 2-year yields up 4.9 bps to 4.551%
- 5-year yields up 6 bps to 3.901%
- 10-year yields up 5.4 bps to 3.746%
- 30-year yields up 4.9 bps to 3.931%
In turn, that is helping to keep the dollar bid this morning with EUR/USD down 0.2% to 1.0685 and USD/JPY in particular up 0.3% to 140.35 at the moment. But the moves are roughly similar to what we had at the start of the session here.
Only the pound has slipped a little further alongside the antipodeans, with GBP/USD down 0.5% to 1.2385 and AUD/USD now down 0.4% to 0.6585 on the day.
Elsewhere, gold tested its 100-day moving average once again and is seen holding above that - at least for now.
In the equities space, the overall mood remains tentative with US futures keeping little changed in general. S&P 500 futures are flat, Nasdaq futures down 0.2%, and Dow futures up 0.1%. However, the breakout move from Friday does provide scope for optimism:
The S&P 500 is looking towards testing the highs from August last year while the Nasdaq itself has broken that barrier, as tech stocks could be angling towards a stronger run to the upside on the back of the AI boom.
