The dollar is sitting firmer across the board while Treasury yields are also pushing higher, with 10-year yields sealing a breakout above 3%. It's quite the extensive breakout for bond yields and one that could be hinting at a more painful squeeze. This is one queasy chart:
Adding to the mood today is slumping equities again with S&P 500 futures down 1.1%. There's a lack of love for stocks now and with the selloff in bonds, the run towards cash is continuing to keep the dollar underpinned.
Low rates and excessive stimulus during the pandemic has created a monster. And now it's time for markets to deal with that as central banks look to tighten policy in the wake of surging inflation pressures.
Looking ahead today, there won't be much in Europe to shake things up so expect the same themes to play out before we get to the key risk event later this week; that being US CPI data on Wednesday.
0645 GMT – France March trade balance data0800 GMT – SNB total sight deposits w.e. 6 May0830 GMT – Eurozone May Sentix investor confidence
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.