10-year yields rise by nearly 4 bps to 1.655%
’sell the rumour, buy the fact‘
As mentioned , there is limited scope for an extended selloff in Treasuries with the rates market already pricing in ~70% odds of a rate hike by December 2022.

The Fed has a fine line to walk today but in all likelihood, it will just reaffirm the status quo in the market in the past few weeks
There are a couple of things we can expect from the Fed today but essentially, Powell & co. will want to try and maintain a more dovish stance

NHK reports on the matter
The Tokyo state of emergency is to run until 21 March but given how the virus situation has been improving, the government is more than likely to lift that this week.

It is going to be all about the bond market today
As much as the Fed wants to walk a tightrope and keep a more dovish tone while not sounding too controlling over recent developments in the bond market, the lack of pushback (once confirmed) is arguably going to be the key takeaway for investors.

Forex news from the European morning session – 16 March 2021
Headlines:
Markets:
– CHF leads, GBP lags on the day
– European equities higher; S&P 500 futures up 0.1%

US chief medical adviser, Dr. Anthony Fauci, speaks in an interview
This will keep market participants pleased in brushing aside the recent AstraZeneca worries that have been cropping up in Europe. If anything, this also makes clearer the vaccine divergence between the US and Europe – which .

It is all about the AstraZeneca vaccine
As much as there are concerns, there is so much politics involved with the vaccine rollout in the EU that makes it tough to really get an objective view of the matter. I mean, the EU has had its fair share of beef with AstraZeneca before all this took

Dollar falls against the euro and franc, trims gains against the pound, aussie
There isn’t much of a clear direction in the market today as traders and investors are all waiting on the Fed tomorrow to commit to any firm moves.

Bloomberg reports, citing an article published by China Finance
The article refers to remarks by PBOC deputy governor, Liu Guiping, who is said to have suggested new laws to better coordinate policies in order to maintain financial stability and prevent risks from bubbling up in China.

Forex news from the European trading session – 15 March 2021
Headlines:
– NZD leads, AUD lags on the day
– European equities higher; E-minis up 0.3%
– US 10-year yields flat at 1.625%