It’s a slow start to the week but there is some top-tier data on inflation and the consumer and both will be market movers.

Monday:

A Lithuanian athlete is reported to have tested positive for COVID-19 in the Japanese capital, with reports also leaking that a member of Israel’s Olympics team has also tested positive upon arrival in Tokyo for the games.

With Tokyo undergoing a state of emergency, the Olympics will take place without spectators but it is regrettable to see that athletes are contracting the virus as well; even if it may have been due to the travel journey itself.

The Olympics will take place starting from 23 July and this arguably won’t be the last cases we hear involving athletes/teams contracting the virus.

10-year yields are back up above 1.30%, coming well off yesterday’s low of 1.25% as we see a move towards 1.34% ahead of European trading today.

There was a late bounce yesterday already as equities also fade losses but there is still some hint of caution considering the developments seen earlier in the week.

It it still too early to say what the latest bounce represents but so far, market participants may take some comfort from this ahead of the weekend at least.