The dollar was also off a shade on the other majors, but underpinned by Treasury yields as the 10-year got within a whisker of its recent eight-month high of 4.641%.
A break of that would target the 2024 peak at 4.739% and further challenge equity market valuations.
While the S&P 500 returned 25% last year, it was built on a very narrow base with almost half of that from just five stocks.
Japanese bond yields were also on the rise, reaching levels not seen since 2011 at 1.121%, as markets assume the Bank of Japan will hike sometime soon, even if not this month.
Unfortunately for the yen, Treasury yields have been rising faster to keep the spread at a chunky 351 basis points in favour of the dollar.
Meanwhile, Chinese yields keep hitting all-time lows and the yuan touched a 16-month trough on Monday at 7.3286 per dollar.
Dollar bulls are now counting on a host of Federal Reserve speakers this week to sound cautious about cutting rates much further, with a focus on influential Fed Governor Waller on Wednesday.
Service PMIs due later on Monday should echo the U.S. economic outperformance, though there's a chance the German CPI could surprise on the upside and offer the euro some aid.
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