T-bond yields remain stable near multi-day lows, with a two-day downtrend being challenged.
Infections in the United Kingdom are at their highest level since January, while virus-related mortality in Thailand are at an all-time high.
The Fed’s Bostic highlighted Delta variation risk for the US economy in the FOMC minutes, which repeat cautious optimism.
US Jobless, ECB Special Meeting Claims to be able to adorn a calendar, but the secret is risk triggers.
Before Thursday’s European session, US bond bears test the recent two-day south-run around late February lows. The 10-year coupon, on the other hand, is hovering at 1.3200 percent after falling to 1.2980 the day before, its lowest level since February 19.
The attempts of US Fed officials to reject a rate hike, reinforced by the latest FOMC minutes and lower US data, pushed on Treasury yields earlier. Concerns about the coronavirus (COVID-19) and its variations, however, have recently put a safe-haven bid under bond rates.
Major policymakers remained concerned about the upside risk to inflation, according to minutes from the most recent Federal Open Market Committee (FOMC), although “considerable further work” needed to alter monetary policy was noted. As a result, the week’s much-anticipated event failed to deliver anything new, but it did tease US dollar bulls around a new three-month high following the announcement.
On the other side, the UK’s covid death toll has lately decreased, but virus infections have risen to their highest level in six months on Wednesday, surpassing 32,000, while Thailand’s death toll has reached an all-time high of 75. In addition, the state of New South Wales (NSW) in Australia has the greatest number of cases in 2021.
“A new spike in coronavirus infections fueled by the more virulent Delta form could cause consumers to “draw back” and hinder the US recovery,” according to Atlanta Federal Reserve President Raphael Bostic, according to Reuters.
The US S&P 500 Futures have retreated from a record high, down 0.20 percent by press time, as Treasury yields benefit from cautious sentiment.
Market participants will be watching the weekly Jobless Claims for fresh signs about the robust US employment sector in the coming weeks, which might amplify the risk-off trend. Furthermore, the ECB’s expected preference for cheap money policies can benefit the US dollar while simultaneously supporting bond bears.
Check out the ECB’s Special Meeting Preview: There are three potential EUR/USD movers to keep an eye on./n
