2024-04-05 07:40:00 ET
Summary
- It seemed that it was the dramatic reversal in US equities that helped drag global shares down today, that forced US rates lower.
- Asia Pacific equities tumbled, led by more than 1% losses in Japan and South Korea.
- The 10-year Treasury yield is up a couple of basis points to 4.33%. It settled near 4.20% a week ago.
Overview
The focus is squarely on the US employment report. At the risk of oversimplifying, given the position adjustment in the past 48 hours, a solid report can see the greenback recover, while a disappointing report will likely see it deepen the correction of the rally that began with the February jobs report. The dollar recovered in the North American afternoon yesterday and many observers attributed it to the bevy of Fed comments. Yet, the interest rate market saw little reaction. It seemed that it was the dramatic reversal in US equities that helped drag global shares down today, that forced US rates lower. Asia Pacific equities tumbled, led by more than 1% losses in Japan and South Korea ( KOSPI ). Europe's Stoxx 600 ( STOXX ) is off around 1.2%, and if sustained, could be its biggest loss so far this year. European benchmark yields are 1-3 bp firmer. The 10-year Treasury yield ( US10Y ) is up a couple of basis points to 4.33%. It settled near 4.20% a week ago....
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U.S. Employment Data To Set Dollar's Course