• And that isn’t caused by another bout of ‘bad news is good news.’ Maybe it is geopolitics (US tensions with Russia over Ukraine or with China over pretty much everything), or corporate tax hikes, or the fact that all the good news has been priced in for the next several years (our thinking), UST yields are down by a chunky 3-12bps across the curve. And with the belly of the curve rallying the most.
  • Bund yields were flat this week and so were peripheral yields (mostly) despite ECB taper talk emerging. Equity market gains are ranging from 1% for most European bourses to 2% for the S&P 500 and 2.6% for the Nasdaq. EM equities were flattish. In FX the greenback giving up some of its YTD gains has caught our attention. that has mostly benefitted EUR and JPY.



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