The market is seeing some mixed tones so far today as the jury is still out on the omicron variant.
US futures are keeping slightly higher but there is a light retreat in bond yields and oil in Asia trading. Of note, 10-year Treasury yields are down nearly 2 bps to 1.46%.
If anything else, that continues to highlight some push and pull appetite in the bond market. While there is scope for early optimism on omicron, it is a bit early to draw any real conclusions.
In the bigger picture though, this chart continues to offer the range that yields can roam around with for the time being:
In FX, the dollar is a touch softer with EUR/USD up slightly to 1.1290 while USD/JPY is seeing gains so far this week stall, though keeping above its 200-hour moving average @ 113.40.
Meanwhile, the aussie is continuing its good run of form to start the week. AUD/USD is up another 0.2% to 0.7130-40 as buyers look to extend the retracement leg in the pair.
Looking ahead, the risk mood will continue to be key in dictating trading sentiment considering the lack of notable data releases in Europe.
1200 GMT - US MBA mortgage applications w.e. 3 December
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
