• Home
  • Analytics
  • Market News
  • US T-bond yields cling to 1.48%, S&P 500 Futures retreat from record high amid sluggish markets

Market news

28 December 2021

US T-bond yields cling to 1.48%, S&P 500 Futures retreat from record high amid sluggish markets

  • US Treasury yields refrain from extending the previous day’s pullback from fortnight high.
  • S&P 500 Futures seek fresh clues around all-time highs.
  • News concerning US retail sales, stimulus and Omicron favored bulls earlier.
  • Lack of major catalyst tests the market optimism amid holiday mood, US data eyed.

Market sentiment dwindles during early Tuesday, following an upbeat start to the week. The reason could be linked to traders’ rethink over the previously positive risk catalysts amid an absence of major data/events and holiday mood.

That said, the US 10-year Treasury yields seesaw around 1.48% after the 1.7 basis points (bps) of a decline the previous day whereas the S&P 500 Futures print mild losses around 4,775 after the Wall Street benchmark refreshed the record on Monday. It should be noted that the US 2-year Treasury yields printed the higest of 0.758% for the day, the highest since March 2020.

Strong holiday season US retail sales and studies showing fewer odds of hospitalization due to the Omicron covid variant offered a positive week-start to the traders after the Christmas holidays. On the same line were comments from US Vice President Kamala Harris who signaled to use her tie-breaking vote to pass President Joe Biden’s Build Back Better (BBB) stimulus plan. Furthermore, headlines from the People’s Bank of China (PBOC) and the Chinese Finance Ministry, suggesting further easy money to help sustain the growth of the world’s second-largest economy, also favored the risk appetite.

It’s worth noting that the US Centers for Disease Control and Prevention (CDC) followed the UK while reducing the isolation and quarantine period for the general population from the previous 10 to five.

On a different page, ongoing talks over Iran’s denuclearization and a global push for peace between Russia and Ukraine also seem to have offered relief to the markets.

Above all, markets remain dicey amid an absence of major data/events considering the year-end inaction and positioning. It should, however, be kept in mind that the Fed’s rate hike concerns may keep the US Treasury yields firmer, which in turn could help the US Dollar Index (DXY), up 0.05% intraday around 96.12 at the latest.

That said, the US S&P/Case-Shiller Home Price Indices and House Price Index for October will precede the Richmond Fed Manufacturing Index for December to entertain intraday traders. However, major attention will be given to the Omicron headlines and risk catalysts mentioned above.

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location