All Eyes on the U.S. 5-Year Treasury Auction?
24.03.2021
- U.S. 5-Year Treasury Auction
- Testimony by Federal Reserve Chairman Powell and Treasury Secretary Yellen at a Congressional Hearing
Yesterday, a risk-off sentiment took hold in the U.S. markets, 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 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—among other factors.
Today, at 16:00, the UK Consumer Price Index, Retail Price Index, and Producer Price Index, as well as Turkey’s Consumer Confidence Index will be released; at 17:15, France’s Manufacturing/Services PMI (flash estimates);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 23:00, testimony by Fed Chair Powell and Treasury Secretary Yellen at a congressional hearing; at 23:30, U.S. weekly crude oil inventories; and at 26:00, a U.S. 5-year Treasury 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.
