Month: March 2022

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In general, the selloff in the bond market is hitting a bit of a pause with Treasury yields backing down from the highs earlier in the week. Even the BOJ’s efforts earlier managed to see 10-year JGB yields move down from its implicit cap of 0.25% to 0.22%. 2-year Treasury yields are down 3.5 bps
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Greg posted earlier on the drop for the oil price and added, presciently: The price moved down sharply early in the session on the back of hopes for a Ukraine/Russia cease-fire. There were some conflicting reports about the peace prospects which subsequently took some of the steam out of that idea. Plenty of folks have
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Euro rebounds strongly today on hope of positive development out of negotiation between Ukraine and Russia. Top Russian negotiator Vladimir Medinsky was quoted saying that talks were constructive and a Putin-Zelenskyy meeting is possible. BBC also quoted Russian deputy defence minister Alexander Fomin saying they will “radically reduce” military activity outside Kyiv and Chernihiv. Additionally,
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Pound among the worst G10 performers during the American session. DXY trims losses as optimism starts to fade. GBP/USD unable to sustain a recovery, 1.3050 exposed. The GBP/USD gave up all gains and dropped back under 1.3100 after reaching earlier a daily high at 1.3159. The dollar gained strength as Wall Street trimmed gains, while
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2-year yields are up nearly 4 bps to 2.42% while 10-year yields are up 2.5 bps to 2.50% on the day. An inversion of the 2s10s looks imminent but I would argue perhaps the market has already come to terms with that. I’ll save the recession indicator talk for another time but just be wary
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