No clear cut moves in Treasuries for the time being
10-year yields are higher relative to opening levels to start the week but the highs this week were capped by the late-September high around 1.567% and we are seeing more tepid conditions now awaiting the US jobs report tomorrow.

Dollar pairs keeping within 10 pips of one another
I reckon that pretty much says it all about how FX is performing so far today. There were some slight gains in commodity currencies early but they didn’t amount to much as trading conditions appear to be rather light (pre-NFP lull perhaps?).

Putin to the rescue

Forex news from the European trading session – 6 October 2021
Headlines:
Markets:
– JPY leads, NZD lags on the day
– European equities lower; S&P 500 futures down 1.2%

Latest data from the Mortgage Bankers Association for the week ending 1 October 2021
–  -1.1%
– Market index 684.5 vs 734.9 prior
– Purchase index 275.7 vs 280.4 prior

European indices bordering on being down by 2%
The pressure on equities is not letting up so far in European morning trade as the DAX is now down by 2% on the day with other major indices in the region holding losses thereabouts on the session at the moment.

Things are looking really ugly out there
Meanwhile, Dutch gas futures are seen up over 60% in just two days this week and briefly clipping above €130 today as the energy crisis in Europe deepens.

Remarks by US Treasury secretary, Janet Yellen
Not anything that hasn’t been said before as she doesn’t want to step into the toes of lawmakers in Congress as they sort the issue out.

Forex news from the European trading session – 5 October 2021
Headlines:
Markets:
– NZD leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.5%

At least someone is being honest
As much as central bankers have kept up the narrative that the surge in inflation pressures is temporary or ‚transitory‘, they don’t really have the right tools to deal with the root of the problem. As such, the best they can do is to hope that to be the case.