Attention May Turn to the U.S. 5-Year Treasury Auction

Attention May Turn to the U.S. 5-Year Treasury Auction

24.03.2021

Yesterday, the U.S. markets were gripped by a risk-off sentiment, with falling stock prices, lower interest rates, and a weaker U.S. dollar. Gold rebounded from its earlier 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 an intraday high of 152.5 to 148.9. This appears to be influenced by stagnant economic activity in countries such as Germany—where the vaccination completion rate is lower than in the U.S. and lockdowns have been extended due to the spread of the virus.

Today, at 4:00 p.m., the UK Consumer Price Index, Retail Price Index, and Producer Price Index, as well as Turkey’s Consumer Confidence Index, will be released; at 5:15 p.m., France’s Manufacturing/Services PMI (flash estimates) will be released;at 5:30 p.m., Germany’s Manufacturing/Services PMI (flash estimates); at 6:00 p.m., the Eurozone’s Manufacturing/Services PMI (flash estimates); and at 6:30 p.m., the UK’s Manufacturing/Services PMI (flash estimates) are scheduled.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,at 11:00 PM, testimony by Fed Chair Powell and Treasury Secretary Yellen at a congressional hearing; at 11:30 PM, U.S. weekly crude oil inventories; and at 2:00 AM, a U.S. 5-year Treasury note auction.Along with the trend in U.S. long-term interest rates, which have been stabilizing, we will also be watching the results of today’s U.S. 5-year Treasury auction.