U.S. public finances are the main focus of financial markets
U.S. public finances are the main focus of financial markets. The upcoming vote on the Tax Bill could widen the deficit, while the 20-year bond auction has drawn only modest demand. As a result, government bond yields are rising, the dollar is weakening, and equities are pausing their rally.
In our intermarket dashboards, we observe the Dow stalling against gold and monitor the relationship between 30-year Treasuries and the S&P 500. This indicator has dropped to its lowest level since the beginning of the year, following the decline in T-30 prices. Overall, the bond market is slipping toward the 200-day moving average — a key resistance level for keeping the uptrend, which began in January, alive.
On the macroeconomic front, today is PMI survey day for May. The Ifo survey in Germany and the CFNAI in the U.S. are also highly anticipated.
Our forecast analysis points to an uncertain day for equities, with continued positive signals for bond yields. On the currency front, the dollar is losing ground, while gold is once again showing a positive signal. Volatility is expected to remain stable or rise slightly, especially in the bond market.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 22 May 2025 - 7:33 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
