S&P 500 futures dipped 0.1 percent and Nasdaq futures 0.2 percent, after rallying on Friday as bond yields eased back a little.
San Francisco Fed President Mary Daly on Saturday reiterated rates would have to go up but set a high bar for moving to half-point increases.All of which sets the scene for Fed Chair Jerome Powell’s testimony to congress on Tuesday and Wednesday, where he will no doubt be quizzed on whether larger hikes are needed.
Australia’s central bank is expected to lift its rates by 25 basis points on Tuesday, while the Bank of Canada is seen pausing having raised rates at a record pace of 425 basis points in 10 months. The BOJ jolted markets in December when it unexpectedly widened the allowed trading band for 10-year bond yields to between -50 and +50 basis points.