The market is showing mixed tones on the day
Let's take a look at what is happening across the market so far on the day:
Equities
European indices are marked lower as the gains yesterday look to be pared back slightly while US futures are still relatively steady near unchanged levels for the most part.
There is a slight sense of trepidation as sentiment softens slightly in the market but tech looks to be lagging as Treasury yields are surging higher after the long weekend.
Bonds
10-year Treasury yields are up nearly 5 bps close to 1.37%, closing in on the double-top just below 1.38%. That is a key technical region to watch as the market starts to liven up this week and that could have broader implications for other asset classes too.
Yields in Europe have also pushed higher so this isn't solely just a Treasuries thing, but keep in mind that we are going to be getting a huge wave of supply in auctions this week.
All things considered, I'd say the bond market is going to be the key spot to watch as we look towards the session ahead and how things will play out during the week.
FX
The dollar is keeping a little higher on the balance of things as it holds little changed against the euro and franc but is maintaining decent gains against the likes of the pound, loonie, aussie and kiwi in European morning trade.
The pound is continuing a bit of a struggle to start the week while the loonie looks to be weighed down by lower oil prices as WTI falls by over 1% to $68.40.
Meanwhile, the aussie is pressured towards support at 0.7400 with the RBA trying to play with the optics earlier today but that seems to have backfired a little as the dust settles.
Commodities
The silver squeeze yesterday amid thin markets offered something interesting but amid higher yields today, base metals are struggling with gold down 0.8% to $1,809 and silver down 1.6% to $24.29 currently.
Oil is also not having a good time as WTI is marked down a little over 1% to $68.40 as the push away from the $70 level holds for now, but not without dip buyers stepping in every now and then over the past few sessions.
Cryptocurrencies
It is not shaping up to be a good day for cryptos with Bitcoin pulled lower to $51,000 after the upside break over the weekend while Ethereum is down over 5% to $3,750 currently - both off the lows for the day at least.
