US Treasury Yields Bounce Back as Global Equities Remain Positive
The US Treasury Yields have bounced back and are showing strong support, making it likely that they will continue to rise in the coming sessions. The broader picture is bullish, with a consolidation happening for now before a potential breakout and fresh increase.
However, the near-term currency outlook remains mixed, with the Dollar Index looking set to reach 99.40, EUR/USD remaining capped below 1.17, and USD/JPY possibly staying in the 159-160 range with downside risk below 159.
Aussie remains positive above 0.72, while Pound has declined below resistance near 1.37. The US PCE has dipped slightly to 3.7% (YoY) in July from 3.73% in June, but this did not have a major impact on the yield movement.
Global equities remain broadly positive, with Dow continuing to strengthen and potentially rising towards 54,000, while DAX needs a sustained break above 26,500 to extend gains towards 27,250-27,000. Nifty has weakened after failing to sustain above 24,300 but remains constructive above 24,100.