Bump in the road

Today's news headlines: 

‘Treasury sell-off sweeps in to US corporate bond market’. As western world economies prepare for a recovery in the latter half of 2021, inflationary fears have failed to subside. The US stimulus and the Coronavirus vaccine rollout's gathering pace caused a sell-off in US Treasury bonds. Investors have since re-adjusted their investments in response to this market uncertainty, withdrawing $2.5bn in capital from US corporate bond funds just last week alone. As a result, the bond sell-off has spilt into the corporate bond market, with yields climbing, on average, 0.50% since the start of the year. (Financial Times)

‘Countries across Europe suspend use of Oxford/AstraZeneca jab’. In another blow to the vaccine rollout in Europe, reports of adverse side effects have surfaced around the Oxford/AstraZeneca vaccine. With an average vaccination rate across the bloc standing at 10.6 per 100 people, this lags far behind other countries such as the UK, vaccinating at a rate of 36.5 per 100. The World Health Organisation has since voiced its support for the vaccine in the hope that rollouts can begin to move forward and end the global fight against the virus. (Financial Times) 

Today's events, rates, and data 

  • The S&P 500 traded positive again yesterday, rising 0.60%. The Nasdaq also performed well, gaining 1.0%. Sterling is down 0.40% against the Dollar and the Euro in early trading, while oil looks to be consolidating around the $68 level. 

Today's events

Japan Revised Industrial Production: 4.30% vs 4.20% last month. 
German ZEW Economic Sentiment: 10:00AM
US Retail and Core Retail Sales m/m: 12:30PM
US Industrial Production m/m: 1:15PM
US Business Inventories m/m: 2:00PM
Australia RBA Assistant Governor Christopher Kent Speaks: 11:30PM

Interbank rates

GBP/USD – 1.3859
GBP/EUR – 1.1598
EUR/USD – 1.1929
USD/CAD – 1.2484

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