The bond market is testing another key level, with the US 10-year yields rising by 5.5 basis points to 4.303%. Gold is down 1% to $2,887.82, potentially ending its eight-week winning streak.

Spanish February preliminary CPI is reported at 3.0%, matching expectations, while Switzerland’s Q4 GDP grew by 0.2%. The Eurozone’s January M3 money supply rose 3.6%, below the anticipated 3.8%, alongside a stable consumer confidence index of -13.6.

In the currency market, the USD and CAD performed well, while the JPY lagged. European equities declined, and US S&P 500 futures increased by 0.6%.

The movement in bond yields indicates shifting expectations in fixed-income markets, with US 10-year yields climbing to 4.303%. Such a rise suggests changing views on inflation or monetary policy, both of which can impact broader financial conditions. Higher Treasury yields often weigh on interest-rate-sensitive assets, which may help explain the decline seen in gold prices. A 1% drop in the precious metal brings it to $2,887.82, raising the possibility of an end to its eight-week advance.

Spain’s preliminary inflation data for February aligns with expectations at 3.0%, providing no surprise on that front. Meanwhile, Switzerland’s economy expanded by 0.2% in the fourth quarter, reinforcing the perception of steady, if unspectacular, growth. A softer-than-expected rise in the Eurozone’s M3 money supply, at 3.6% instead of the forecasted 3.8%, suggests liquidity growth is slowing. Consumer confidence in the region remains unchanged at -13.6, reflecting persistent caution among households.

In the currency space, the US dollar and Canadian dollar exhibited relative strength, while the Japanese yen underperformed. This pattern highlights diverging monetary policies and risk preferences. European equities moved lower, reflecting weaker sentiment across regional stock markets. Meanwhile, US equities, as indicated by S&P 500 futures, posted a 0.6% gain, pointing to improved risk appetite despite fluctuations elsewhere.

Given these developments, traders should closely monitor how shifts in yield levels influence broader market behaviour. Bond moves often feed into credit conditions and equity valuations, particularly at a time when central bank decisions remain a primary market focus. Currency traders will want to account for relative central bank policies and capital flows, as differences in rate expectations continue to drive volatility. For commodities, any further adjustments in inflation or interest rate outlooks could have direct effects on gold’s ability to sustain recent gains.