Attention may turn to the yield on 30-year U.S. Treasuries

Attention may turn to the yield on 30-year U.S. Treasuries

13.05.2021

Yesterday, U.S. stock prices fell sharply, with the S&P 500 closing at 4,063 points, down 2.14% from the previous day.Investors were spooked by the rise in the U.S. 10-year Treasury yield, which briefly climbed to 1.69%, approaching the 1.7% mark. Additionally, the U.S. Consumer Price Index (CPI) for April, released yesterday, showed a 4.2% increase—the highest rate since September 2008—with rising gasoline prices being a particularly notable factor.

In the foreign exchange market, the GBP/JPY pair, which has been trending higher, rose further during yesterday’s U.S. trading hours, touching 154.4. There has been no pullback during today’s Asian trading session, and the pair is currently trading around 154.2. The GBP/USD pair is falling under pressure from the strength of the U.S. dollar and is currently trading around 1.406.

No major economic indicators are scheduled for release today during European trading hours. Once U.S. trading begins, the following events are scheduled: remarks by Bank of England Deputy Governor Kanliff at 21:00, U.S. initial jobless claims and the U.S. Producer Price Index at 21:30, remarks by Richmond Fed President Barkin at 23:00, U.S. weekly natural gas inventories at 23:30,at 24:00, remarks by Bank of Canada Governor Macklem; at 25:00, remarks by Bank of England Governor Bailey; at 26:00, a U.S. 30-year Treasury auction and remarks by Federal Reserve Governor Waller; and at 29:00, remarks by St. Louis Fed President Bullard. While keeping an eye on today’s U.S. economic data releases, we will continue to monitor price movements closely.