The strongest to the weakest of the major currencies

The AUD is the strongest and the USD is the weakest as traders correct some of the US dollar declines seen over the last few trading days. The declines come despite higher yields (although yields are off their highs), and continued higher crude oil prices (crude oil prices are up $0.75 to a new seven year high $86.04 currently).

The U.S. Treasury will auction off $20 billion a 20 year bonds at 1 PM ET. The last auction a month ago at a high yield of 1.942%. The current 20 year bond is trading at a yield of 2.25% after the sharp rise over the last month.

US stocks are taking a breather from there recent declines with modest gains in early trading.

UK inflation reached a new 30 year high. Gov. Bailey speaks later today.

Canada CPI will be released at 8:30 AM ET along with US housing starts and building permits.

In other markets, the morning snapshot shows:

  • Spot gold is trading of $4.62 or 0.25% at $1817.93
  • Spot silver is up $0.26 or 1.11% at $23.72
  • WTI crude oil is trading up $0.64 or 0.75% at $86.04 (new seven year high.
  • Bitcoin is trading at $42,037.27

In the premarket for US stocks, the major indices are trading modestly higher after yesterday's sharp declines

  • Dow industrial average is trading up 72.53 points after yesterday's -543.34 point decline
  • S&P index up 13 points after yesterday's -85.74 point decline
  • NASDAQ index up at 41 points after yesterday's -386.86 point decline

In the European equity markets, major indices are trading lower as well

  • German DAX, +0.4%
  • France's CAC +0.6%
  • UK's FTSE 100 +0.4%
  • Spain's Ibex +0.7%
  • Italy's FTSE MIB -0.1%

US yields are higher again but off the day's high levels. The 10 year yield moved to a new cycle high of 1.902% (highest level since Jan 2020). The 2 year yield stayed above 1.0% as the market prices in more hikes in 2022 (with the first earmarked for March).

US yields
US yields are continuing the move higher

In Europe, the benchmark 10 year yields are all higher with the German 10 year above parity for the first time since May 2019. The UK 10 year yield is also higher after UK CPI inflation rate moved to the highest level in 30 years (5.4%).

The German 10 year yield is back above parity