S&P 500 Futures cheer easy US Treasury yields near 15-week top amid anxious markets

• S&P 500 Futures keeps the previous day’s rebound with mild gains.
• US 10-year Treasury yields step back from multi-day high.
• Market sentiment dwindles as vaccine optimism, cautious mood ahead of China PMI battle Fed tapering, Evergrande concerns.
• US policymakers’ battle over debt ceiling, stimulus will be important, updates from China, Fedspeak should be watched as well.

Having witnessed a risk-off day, global markets remain sluggish during Thursday’s Asian session.

While portraying the mood, the US 10-year Treasury yields print 2.5 basis points (bps) of a fall to 1.51%, extending pullback from a six-month high flashed the previous day. However, the S&P 500 Futures rise 0.30% intraday to keep Wednesday’s rebound from a weekly low.

News of AstraZeneca’s covid vaccine showing 74% efficacy in the large US trial seems to have underpinned the latest hopes of overcoming the Delta covid crisis. However, a jump in Aussie virus infections joins the indecision over the US stimulus and debt ceiling issue ahead of October 01 budget expiry to question the mood.

Additionally, fears that China’s power cut issues will join the Evergrande saga to drown the world’s second-largest economy back towards the pandemic-era economic performance challenge the mood.

Elsewhere, the Fed tapering concerns underpinned the US Treasury yields to refresh the highest levels in 15 weeks before the latest pullback.

It’s worth noting that US House Speaker Nancy Pelosi is hopeful of a solution and President Joe Biden also turned down his official travel plans to solve the critical issue on hand, which in turn keep investors hopeful ahead of the decision day. Also important will be to observe China’s official and Caixin PMI data to gauge the nation’s economic performance during challenging times. Additionally, headlines concerning the final reading of the Q2 US GDP and Weekly Jobless Claims may also entertain the traders.

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