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The 30-year US Treasury yield is at a 19-year high due to continued inflation fears.
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US stock indexes stumbled Monday and were under continued pressure early Tuesday morning.
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The Grains sector was higher across the board on the continued inflow of investment money, with some commercial interest thrown in for good measure.
Morning Summary: Given the normal Manic Monday activity seen yesterday, I kept an eye out for a round of typical Turnaround Tuesday trade in the commodity complex overnight through the pre-dawn hours. However, as of this writing, there are only a few markets that would fall into that category. One of them is a star, though, with diesel fuel (distillates) down 2.75 cents and near its session low to start the day. Before we get overly excited, trade volume was light with the spot-month issue registering only 2,000 contracts changing hands while the first deferred issue was showing 3,000 contracts traded. Meanwhile, WTI crude oil was holding above $85, and Brent crude was north of $91 early Tuesday morning. As for today’s early headlines, there were no surprises as the 19-year high by the 30-year Treasury yield grabbed the top spot while others mentioned the US president dumping another long-time ally, this time South Korea[i]. Despite talk of inflation ramping up, gold and silver were both under pressure, both viewed as potential Turnaround markets following Monday’s rallies. On the other hand, US stock index futures were lower pre-dawn, extending Monday’s selloff. With US Treasury yields climbing, this is what would be expected of stock indexes.
