All eyes on the U.S. 5-year Treasury auction

All eyes on the U.S. 5-year Treasury auction

24.03.2021

Yesterday, a risk-off sentiment took hold in the U.S. market, with stocks, interest rates, and the U.S. dollar all falling. Gold recovered from its decline and is now trading in a range around $1,730.

The foreign exchange market is showing a trend toward a stronger yen. European currencies have fallen notably, with the pound-yen exchange rate dropping from a temporary high of 152.5 to 148.9. This appears to be driven by stagnant economic activity, including Germany—where the deadline for lifting lockdowns has been extended due to the spread of the virus—and the fact that vaccination rates remain lower than in the United States.

Today, at 4:00 PM, the UK Consumer Price Index, Retail Price Index, and Producer Price Index, as well as the Turkish Consumer Confidence Index, will be released; at 5:15 PM, the French Manufacturing/Services PMI (flash estimates),at 5:30 PM, Germany’s Manufacturing/Services PMI (flash estimates); at 6:00 PM, the Eurozone’s Manufacturing/Services PMI (flash estimates); and at 6:30 PM, the UK’s Manufacturing/Services PMI (flash estimates).Additionally, in U.S. time, U.S. Durable Goods Orders are scheduled for 21:30, U.S. Manufacturing/Services PMI (flash estimates) for 22:45, testimony by Fed Chair Powell and Treasury Secretary Yellen at a congressional hearing for 23:00, U.S. weekly crude oil inventories for 23:30, and a U.S. 5-year Treasury auction for 26:00.Along with the stabilizing trend in U.S. long-term interest rates, we will also be watching the results of today’s U.S. 5-year Treasury auction.