• Despite dollar funding markets predictably drying up because of the Russia sanctions, markets in general are remarkably orderly. Especially when one takes into account the escalation of the Ukrainian conflict over the weekend, with Russian President Putin putting his strategic nuclear forces on high alert.
  • At pixel time US Treasury yields had fallen considerably, with the 10y down 10bps to 1.90 and the 2y down 12bps to 1.48. However, that puts both yields simply at Thursday’s lows.
  • In the offshore dollar funding markets offers are hard to find, to put it mildly. The effective t/n rate for dollar is about 3 percent. At 33bps the three-month FRA OIS spread is still way below its March 2020 panic peak of 79bps though.

 

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