Equity Indices

The Dow Jones Industrial Average surrendered recent triple-digit gains moving back into the red on a year-to-date basis on concerns of  a soaring greenback , a sharp decline in crude oil, and growing concern over when the Federal Open Market Committee raising interest rates.  Emerging-market stocks fell to a seven-week low as industrial companies dropped and China's producer prices declined more than forecast last month.

Interest Rates

Benchmark Bond Yields

The Treasury on Tuesday accepted 1 million in 91-day Treasury bills at an average yield of 0.022% and 2 million in 182-day Treasury Bills.  Outstanding Treasury Bills now amount to Euro 205,140,000 - a decrease of Euro 1.3 million from the previous week.

Greece is set to tap into more than half a billion euros of funds sitting in the country's bank rescue fund as it scrambles to find money this month amid a cash crunch according to banking and government sources.  Shut out of debt markets and with aid from lenders on hold, Athens risks running out of cash in the coming weeks after a steep fall in state revenues.  The government faces a 1.5 billion euro ($1.6 billion) loan repayment to the International Monetary Fund this month and has to refinance some 3.2 billion euros of maturing short-term treasury paper.

Japan's core machinery orders fell 1.7 percent in January from the previous month, underscoring the challenges facing the government as it attempts to nudge firms into boosting spending on wages and equipment with its aggressive stimulus policies.  Nonetheless, emerging signs of a steady pick up in exports have some analysts taking a more sanguine view of the outlook for capital spending even as the economy struggles to motor on from last year's recession

Growth in China's investment, retail sales and factory output all missed forecasts in January and February and fell to multi-year lows, leaving investors with little doubt that the economy is still losing steam and in need of further support measures.  The figures came a day after data showed deflationary pressures intensified in the factory sector in February, reinforcing expectations of more interest rate cuts and other policy loosening to avert a sharper slowdown in the world's second-largest economy.  

Forex

The dollar drifted to a fresh 11-year high against a basket of major currencies as markets wagered the Federal Reserve might raise interest rates sooner rather than later.  Surprisingly strong U.S. jobs data on Friday had put the chance of a mid-year Fed hike squarely on the table, sending Treasury yields sharply higher. That in turn re-energised the greenback's rally.

The euro fell to a fresh lows against the dollar , extending a broad decline after the European Central Bank kicked off its 1 trillion euro bond-buying programme this week.  The ECB began printing money to buy sovereign bonds on Monday with a view to supporting growth and lifting euro zone inflation from below zero. Yields on the debt of nearly all euro zone countries dropped to record lows overnight.

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