Bond yields still nudging higher

The pound is slightly firmer this morning trading just below the 90p level against the euro and at about $1.3550 against the dollar, while the single currency remains around 2 cents off last week’s near 3-year high against the dollar trading just a touch north of $1.2150 at the off today

Bond yields continue to nudge higher with US 10-year yields closing at 1.15% yesterday and equivalent German yields rising to just under -0.50%. UK yields have also increased over the past week or so with 10-year yields more than 10bps higher over this period at 0.32%. Meanwhile, equity markets lost some ground yesterday, shedding around 1%

Fed member Kaplan says once the US economy is “out of the woods” and has “weathered” the pandemic, it will be appropriate for the central bank to starting weaning the markets off the extraordinary monetary stimulus currently in place

Bank of England member Tenreyro says further monetary support may be need for the UK economy, adding it is important that negative interest rates is one of the policy tools that could be used

Data due today include job openings and the small business optimism index in the US