US treasury yield jumped last week after Fed gave way to more yield strength. In the background, there were some concerns over resurgence of coronavirus infections in some countries like France, Brazil and India. There was also risk of slower than originally expected vaccine rollouts. Tensions between US China heightened after the "diplomatic" talks in Alaska. Yet, overall, investors were rather unmoved by the negative news. There was no synchronized free fall in stocks, and overall sentiments were just cautious, but still positive. Yen, Swiss Franc and Dollar ended as the best performers last week but all closed inside prior week's range only. Dollar lacked committed buying to extend it's corrective rebound. Though, Yen crosses look ready for a near term pull back. Euro and Sterling ended as the joint weakest. |
