DOW JONES, NIKKEI 225, ASX 200 INDEX OUTLOOK:
- ASX 200, Nikkei 225 indexes face a souring day as US stocks retreated from record highs
- 10-year Treasury yield climbed to 1.15% on a rising inflation outlook, USD edged higher
- Stocks, commodities, EM currencies may struggle to sustain their recent rally, eyeing a pullback
DOW JONES, YIELDS, USD, COMMODITIES, BITCOIN, ASIA-PACIFIC AT OPEN:
Asia-Pacific equities face a tough day ahead as US equities retreated alongside commodities prices in a wake of rising longer-dated US Treasury yields. The inflation outlook appears to be buoyed by stimulus and reflation hopes after Democrats gained control of the Senate, raising the likelihood of further spending that aims to raise demand and output in the long term. Over last week, the 10-year US Treasury yield surged more than 20 bps to 1.147% – a significant move that rippled across the financial markets. The 20- and 30-year yields also climbed to 1.685% and 1.885% respectively.
