S&P 500 Futures reverses early Asia gains amid mixed clues, strong US Treasury yields

• S&P 500 Futures snap three-day winning streak, drops after printing mild gains in early Asia.
• Virus woes, vaccine jitters and US-China tussle join stimulus hopes to keep US Treasury yields firmer around one-week top.
• Wall Street closed mixed, US NFP will be the key.

S&P 500 Futures extend pullback from 3,965 to print the first negative daily performance in four during Tuesday’s Asian session. The risk barometer earlier benefited from a consolidative move by the US 10-year Treasury yields before marking the 0.10% intraday losses by the press time.

While tracing the clues for the latest declines, the pick-up in the US Treasury yields could gain major attention. Behind the moves could be hopes of a $3.0 trillion infrastructure plan of US President Joe Biden or his comments suggesting 90% of the adult U.S. population will be eligible for vaccination by April 19.

It should be noted that a 31-month high of the Dallas Fed Manufacturing Business Index for March and strong early signals for US jobs also favor the bond bears.

Meanwhile, escalating coronavirus (COVID-19) woes in Europe and Australia join the Western tussle with China to weigh on the sentiment amid a light calendar in Asia.

Though, the recent cooperation among the UK, France and Germany could be considered risk-positive while the US steps to eye easy diplomatic visit to Taiwan seems to challenge the mood.

Amid these plays, stocks in Asia–Pacific trade mixed, mostly down, whereas the US 10-year Treasury yield rises to 1.726% by the press time.

Looking forward, Traders should keep their eyes on the risk catalysts amid a light calendar and the pre-NFP cautious sentiment, not to forget the holiday-shortened week.

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