Bond auction triggers relief rally, stimulus is approved and focus shifts to the ECB

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This is what you need to know to trade today Thursday, March 11:

Markets are benefiting from a quiet auction of US bonds and the approval of the stimulus. The latest debt supply and jobless claims are in the spotlight in the United States, while the ECB’s decision is critical for the euro. Gold and Bitcoin are on the rise.

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Yields: Yields on US debt continue to be the main driver of market sentiment. Wednesday’s 10-year bond auction saw enough demand to drive yields lower and carry the dollar lower. The optimistic mood of the market has carried over to trading on Thursday. Another offer expires on Thursday, this time of 30-year Treasury bonds, linked to mortgages.

Inflation: The consumer price index excluding food and energy increased only 1.3% year-on-year in February, below estimates. It also contributed to the calm ahead of next month’s inflation report, which will likely be higher due to base effects. Thursday’s economic calendar features weekly jobless claims, which are likely down.

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See Preview of Initial US Unemployment Claims: The Two-Way Labor Market Returns

Stimulus: The US House of Representatives approved the 1.9 trillion dollar COVID aid package, to be signed by President Joe Biden on Friday. The aid plan was approved under strict partisan lines, but the administration is already contemplating an even larger infrastructure bill, worth up to $ 2.5 trillion.

Oro: XAU / USD has been on the rise, changing hands above $ 1,730 amid falling yields.

The European Central Bank it will leave its monetary policy unchanged and will publish new forecasts at its meeting on Thursday. The ECB is grappling with rising yields on European debt, which somewhat contrasts with the weak growth prospects of the old continent. Investors will be on the lookout for changes in the bank’s bond purchase scheme.

See ECB Preview: Three scenarios for Lagarde to relax monetary policy and not necessarily lower the euro

The Bitcoin has been hovering around $ 55,000, maintaining its earnings as cryptocurrencies benefit from new purchases.

Hot stocks: GameStop (NYSE: GME) returned to the limelight by staging a roller coaster day on Wednesday, jumping above the previous closing high only to lose 50% and climb again. Roblox (NYSE: RBLX) debuted on Wall Street and generated a lot of interest.

Brexi: The EU and the UK have been fighting over the export of vaccines, in an extension of the matter seen earlier in the year. Great Britain remains ahead of the old continent in immunizing its population.

The crude petróleo WTI it is trading above $ 64 despite significant inventory build-up. USD / CAD is changing hands above 1.26, but below highs after the Bank of Canada left its rates unchanged and refrained from hinting at policy changes.

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