Wyllian Caupucci
06/18/2021
Narrowing
The Treasury yield curve saw its biggest spread tightening in two dayssince March of last year, in the wake of the latest Federal Reserve decision. O30-year instrument yield dropped to 2.07% as investors pulled outtheir inflation bets after Fed projections signal two increasesin rates through the end of 2023. Short-term indicators show that the marketsare back in sync with the Fed’s insistence that inflation will be transitory,with two-year breakeven rates falling back to March levels. Thuslike the Fed’s projections, investors can also look at the price ofraw materials as a guarantee against inflation, since a large part of theCommodity recovery this year has already been eliminated
Not essential
The European Union has added the US to its so-called “white list”, which meansthat Americans can travel to the region without facing restrictions on arrival.European leaders hope that President Joe Biden will reciprocate by raising theban on traveling from Europe to the US. Even with the rapid increase in travelon holiday in Europe, most British travelers remain stranded inamid an increase in Covid-19 delta variant infections. Russia toois seeing an increase in cases linked to this variant, with Moscow introducingnew restrictions to contain the outbreak
New holiday
Speaking of days off, the sudden arrival of June 19 as a federal holiday iscausing a kind of headache for government administrators andprivate companies. Although some private companies have already establishedagreements to treat the day as a holiday, the federal mandate means that moreemployees will likely ask for time off in the future. The banks and financial exchanges ofWall Street is also trying to figure out how to handle change in such a short time.term, with the decision to make it a defined market holiday to be takenafter this year’s occurrence
Calm markets
Global equities are relatively quiet so far, with some volatilitypossible later due to triple-witching when options and index futuresand shares expire. Overnight, the MSCI Asia Pacific index fell 0.1%, while theJapan’s Topix index closed 0.9% lower. In Europe, the Stoxx 600 index fell 0.1%at 6:50 am GMT, with banks among the biggest losers. the futuresof the S&P 500 pointed to a bullish move at the open, oil declined and thegold remained below $1,800 an ounce
Coming
As befits a holiday, there is very little on the calendar for today. The lastBaker Hughes rig count at 2 pm may be interesting, as the US shale is finally back to making money again. the market ofoil may be more concerned about today’s election in Iran, with the outcomelikely to influence the chances of a quick return of the country’s oil to theglobal markets.
Source:https://wintrademarkets.com/
