It looks like tough times are ahead of us regarding the financial markets, as US yields continue to spike relentlessly. On Monday, the benchmark 10-year yield was trading another 2.5% higher, rising to new cycle highs just below 1.4%.

Since equities usually don’t like higher yields, we’ve seen some serious losses over the previous days – Nasdaq is down five days in a row, which hasn’t happened for a long time. EU bourses are also facing sell-offs. 

On the other hand, rising yields are normally bullish for the USD, and the greenback was seen higher across the board during the London session, with the EURUSD pair falling below 1.21 and the USDJPY pair rising toward 106.

The GBPUSD pair was trying to hold the psychological level of 1.40.

For some reason, gold was trading nearly half a percent higher today, despite rising yields and the USD. It looks like we could see a little correction in the bullion as it was sold-off heavily during the previous week.

Later in the day, German IFO surveys are expected to stay near last month’s levels, while investors will also focus on the ECB’s Lagarde speech. 

Source: https://www.axiory.com/market-news/rising-yields-putting-pressure-on-equities

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Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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