US T-bond yields stabilize, stock futures print losses as traders await ECB, BOE
- US Treasury yields pause recent downside, grind lower around weekly bottom.
- S&P 500, Euro Stoxx 50 Futures fail to track Wall Street gains.
- Inflation fears escalate as key central banks brace for monetary policy announcements.
- US data, risk catalysts will add to the busy day ahead of NFP.
Market sentiment stays sluggish as traders await key central bank verdicts amid reflation fears. While portraying the mood, US government bond yields pause the previous downside near the week’s low whereas equity futures in the US and Europe print losses.
That said, the benchmark US 10-year Treasury yields dribble around 1.768% during the third weekly fall. Also portraying the risk-off mood were the 1.0% and 0.50% respective daily losses by the S&P 500 Futures and Euro Stoxx 50 Futures.
It’s worth noting that upbeat earnings from technology giants allowed Wall Street to print mild losses the previous day even as the US ADP Employment Change surprised markets with negative figures of -301K versus +207K market consensus. Earlier in the week, multiple Fed speakers highlighted inflation risks but refrained from providing strong support to a 0.50% rate hike in March.
During today’s early Asian session, US President Biden’s all three Nominees for the Fed Board highlights inflation as a major challenge and showed readiness to act. The inflation fears were also backed by US Treasury Secretary Janet Yellen and Eurozone HICP as well.
Elsewhere, increasing Russian military at the borders signal Moscow’s readiness to invade Ukraine.
Above all, the market’s fears that the European Central Bank (ECB) and the Bank of England (BOE) will track the Fed’s hawkish path keeps sentiment weak.
In addition to the key central bank meetings, US Q4 Nonfarm Productivity and Unit Labor Costs will join the January ISM Services PMI and Factory Orders for December will also offer a busy day to the traders ahead of tomorrow’s US jobs report.