• Bond yields have steadied a bit, but things remain very volatile. 10-year Bund and Treasury yields are way below the peak, though still a good 15bps or so above last week’s lows. Despite the doom and gloom and recession talk having become commonplace, the US Treasury yield curve refuses to invert in the 2-year/10-year spread. Still trading at around 5bps to 10bps.
  • Peripheral spreads have steadied in the wake of the ECB emergency spread control announcement. That is, the announcement that the ECB will likely unveil the new tool at the meeting later this month. The 10-year Italy Bund spread line in the sand seems to be around 200bps. We’re now at 197bps.


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