• Meanwhile in markets, bond yields are loitering near their recent highs while equities are moderately lower for the week as the (bear-market) rally has ran out of steam. Despite the hawkish Fed repricing, the dollar has been mixed this week. Emerging market currencies are actually up half a percent for the week. Major currencies are down by half a percent, which could be blamed on the worsening energy crisis that has hit Europe in the groin.
  • At pixel time the US 10y was at 3.05, down 7bps from the recent pre-Jackson Hole high. Trading remains extremely volatile despite little in the way of news. The yield curve remains strongly inverted, with the 2y/10y spread at minus 33bps.


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