US Equities closed in the green with S&P 500 closing the day 1% higher and Nasdaq closing the day 1.20% higher. The USD index pulled back from 106.63 to 106.18 levels as risk sentiment improved on diplomatic efforts. President Biden will visit Israel on Wednesday, Secretary of State Antony Blinken said in Tel Aviv. Yields on US2s rose to 5.10% and US10s rose to 4.73% and US2s10s bear steepened to -40 bps from last week's close of -45 bps.
NY Empire State Mfg index gauges business conditions for NY manufacturers. The index came in at -4.60 f/c -7.
Fed's Harker comments: the Central Bank should not create new pressures in the economy by increasing the cost of borrowing. "We should not at this point be thinking about any increases"
Earnings Results from Bank of America, Goldman Sachs and Bank of New York Mellon are on Tuesday's Calendar. Economic releases scheduled on the day - U.S. retail sales, industrial production and business inventories data.
India WPI inflation came in softer at -0.26% , consensus est 0.50%.
The market was abuzz with maturity of a $ 5bn S/B Swap auction on Oct 23, 2023. RBI has undertaken the swap on Mar 29, 2022. The maturity of the swap would entail the banking system to deliver USD 5 bn to RBI which fueled USD shortage concerns. Cash Tom points traded to 0 and the rest of the curve shifted lower as Bank Participants moved to buy USD at the front end ahead of the maturity date.
That's the wrap for today. Happy Trading
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