• Overnight markets are more of the same in the sense that Ukraine is casting a huge shadow over pretty much everything. The Russian attack on Ukraine’s largest nuclear power plant (the Zaporizhzhia plant, which also happens to be the largest in Europe) last night is a case in point here. Myopic markets will never be able to price in everything that can go wrong when a Great Power (Russia) embarks on a major land war. Note that according to the latest reports, the Russian attack on the Zaporizhzhia didn’t cause critical damage and that the plant can be shutdown safely, unlike the Chernobyl disaster. The International Atomic Energy Agency will give a briefing on the plant attack this morning.
  • US Treasury yields are still lower regardless, with the 10y down 6bps to 1.78 while the 2y is back to unchanged at 1.49. In other words, the yield curve continues to flatten relentless.


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