• USD leads, CAD lags on the day
  • European equities lower; S&P 500 futures down 0.7%
  • US 10-year yields up 12 bps to 3.825%
  • Gold down 0.6% to $1,650.23
  • WTI crude up 0.3% to $82.38
  • Bitcoin down 0.5% to $19,467

After broad relief was seen in markets yesterday, we are seeing a return to old habits as bonds are selling off a fair bit while the dollar is running higher and equities are pushing lower. UK prime minister, Liz Truss, came out to defend the government's policy plans and batted away any suggestions of U-turn in fiscal action.

Despite some nervous ticks higher in bond yields, 30-year gilt yields are little changed around 3.93% on the day. However, there is a notable selloff in Treasuries across the curve with 2-year yields up 11 bps to 4.20% and 10-year yields up 12 bps to 3.82%.

That kept the pressure on equities with US futures pushing lower after a solid bounce yesterday. S&P 500 futures are down 0.7% while European indices are also pressured lower as German inflation looks set to come in above 10% in September.

The dollar remains in a decent spot, recovering losses from yesterday as GBP/USD was pushed lower by 1% to 1.0765 initially before paring that loss and keeping around 1.0840-70 levels for the time being.

USD/JPY continues to keep buoyant, just below 145.00 with buyers slowly taking aim at the figure level again despite intervention fears. Meanwhile, EUR/USD was initially dragged down to a low of 0.9635 before holding at its 100-hour moving average and rebounding now to near unchanged levels at 0.9730.

Commodity currencies continue to stay under pressure with USD/CAD up 0.4% to 1.3660, though off earlier highs of 1.3755. Then, AUD/USD is down 0.3% to 0.6500 but at least moving off its low earlier as well at 0.6435 as the dollar gives a little bit back.

A report on the PBOC potentially intervening is also something to take note of, taking away part of the dollar's tailwind with month-end trading also in focus.