European bond yields are jumping higher against US bond yields this Tuesday after the European Central Bank (ECB) released a report that revealed wages in the Eurozone are still remaining elevated, which could add to sticky inflatoin in the coming months, pushing back on current rate cut expectations. This pushes the Euro up against the US Dollar to 1.08, a level not seen since February 2nd.
China has lowered its Loan Prime Rate in the following maturities:
1-year tenor unchanged at 3.45% where 3.40% was expected.
the 5-year tenor cut from 4.20% to 3.95%, where 4.10% was expected.
European car sales jumped 11% in January.
Near 13:55 GMT the Redbook Index is due to be released. Previous was for 2.5%.
The US Treasury department is doing a triple auction at 16:30 GMT. A 3-month, a 6-month and a 52-week bill will be auctioned.
Equities are looking for direction ahead of the retailer earnings in the US before the US opening bell. Chinese equities are not really jumping on the Loan Prime Rate cut in China. European equities are mildly lower in European trading together with US equity futures.
The CME Group’s FedWatch Tool is now looking at the March 20th meeting. Expectations for a pause are 91.5%, while 8.5% for a rate cut.
The benchmark 10-year US Treasury Note trades a little bit higher, near 4.29%, after its close on Friday at 4.28% and being closed over Monday due to the US public holiday.
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