Yocto xcursor-transparent
From embeddedTS Manuals
The default image includes the xcursor-transparent icon theme which can be used to hide the pointer. To enable this, run these commands:
mkdir -p ~/.icons/default/
echo "[Icon Theme]" > ~/.icons/default/index.theme
echo "Inherits=xcursor-transparent" >> ~/.icons/default/index.theme
# Now reset x, or reset the unit and the cursor will be invisible.