STATE OF THE MARKETS

Stocks mixed amid rising yields. US stocks closed mixed on Monday as markets continue to digest Fed’s tapering, new infrastructure bill and debt ceiling. Dow (+0.21%) and Russell (+1.46%) climbed higher, while Nasdaq (-0.52%) and S&P (-0.28%) edged lower as bond markets braced higher yields. The 10Y benchmark topped 1.51% as the Dollar index climbed to the 93.50 handle.

In the commodities market, crude advanced further, breaking the $76/bl barrier after OPEC+ reported growing deficit in global supplies. Gold was trapped in a choppy trading between the $1740/50 as yields continue to attract investors to the Dollar.

In the FX space, long term investors were positioned to long Dollar with the Comdolls, while offering Sterling, Euro, Yen and Swiss. Short and medium term traders were seen synching Dollar, Euro and Yen as the month and quarter come to an end this week. Markets look forward to seeing better consumer confidence and Fed’s Powell testimony on Tuesday.