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Risk Appetite Firms On US Debt Ceiling Deal

CROSS ASSET

Early doors Asia Pac Monday trade is seeing risk appetite firm post the weekend news of a tentative debt ceiling deal reached between US President Biden and House Leader McCarthy. US equity futures have opened up higher, +0.50% last for Eminis, Nasdaq futures are slightly higher at this stage (last +0.60%). Both futures are slightly off opening highs.

  • In the FX space, JPY remains on a weaker footing, tracking to a high of 140.87, fresh highs for the pair back to Nov last year. We sit slightly lower now around 140.75. AUD/USD is a touch higher, last around 0.6525 (+0.10% above NY closing levels).
  • In the Treasuries space, TYM3 deals at 112-08, -5 compared to late NY levels on Friday. Cash tsys are closed today for the Memorial Day holiday.

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