Headlines:
- The bond market stays in focus after yesterday's move
- Traders getting less certain about a Fed rate cut in June
- Swiss franc the laggard so far on the session
- Bavaria March CPI +2.3% vs +2.6% y/y prior
- Eurozone March final manufacturing PMI 46.1 vs 45.7 prelim
- UK March final manufacturing PMI 50.3 vs 49.9 prelim
- UK March Nationwide house prices +0.2% vs +0.3% m/m expected
- UK February mortgage approvals 60.38k vs 56.50k expected
Markets:
- AUD leads, CHF lags on the day
- European equities mixed; S&P 500 futures down 0.3%
- US 10-year yields up 2.8 bps to 4.357%
- Gold up 0.4% to $2,259.26
- WTI crude up 1.5%o $85.10
- Bitcoin down 6.1% to $65,495
It was mostly a slow session for major currencies but it may not stay that way when we get to US trading later. Bond yields are on the move again with 10-year Treasury yields now inching higher to test the key threshold of 4.35%. It is up to its highest levels for the year now, as the selling in bonds continue upon the turn of the month.
The dollar is yet to pick up much on that, trading more mixed and little changed on the day mostly. In FX, the Swiss franc is the only decent mover as it drops a little more. USD/CHF is at its best levels for the year in a push to 0.9090 and keeping thereabouts still.
In other markets, gold remains unperturbed as it keeps higher and looks towards $2,260 levels once more. But equities are feeling a bit of the pinch amid higher yields, with S&P 500 futures now down 0.3% on the day.
Elsewhere, Bitcoin is coming under strong pressure in a steep drop under $70,000 to $65,000 levels at the moment.
