• Meanwhile in markets, Friday’s bond market recovery remains intact despite US Treasuries hitting a speedbump yesterday. At pixel time the 10y had settled at 1.40. Eurozone government bonds we’re already in fully rally/recovery mode yesterday, with the 10y Bund closing below ECB President Lagarde’s line in the sand at minus 30bps. Which translates to a real yield of minus 1.5 percent.
  • Equities aren’t benefitting from the reprieve for bonds. Asian markets are in the red, with losses of around 1% for Japanese and Chinese shares despite solid gains for European and US markets yesterday. The driver for losses for Asian equities seems to be Chinese policymakers cooling on goosing growth.
  • In FX we see also something of a reversal of the recent risk-on moves. The greenback has been rallying strongly after investors literally puked EM currencies:

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