• Meanwhile in markets, developed market equities are still loitering near all-time highs while bond yields and EM equities stay lower. And the dollar continues to be on a losing streak.
  • For the week major European indices are flattish, with the Stoxx 50 at 3,976.28 near its all-time high. There’s no stopping the good old S&P 500, which at 4,124.66 is now up nearly 10% YTD. As we pointed out before, the Shanghai Composite is flirting with a correction, trading 8% below its recent high. Blame the tech crackdown, growth rates peaking at a very high level or what else for that.
  • US Treasury yields have been flattish over the past five days despite the improving economic backdrop and Fed-speakers dabbling in taper talk (see below). Bund yields are up by 3-8bps across a bear-steepening curve. At 0.26 the 10y is somewhat solidly above President Lagarde’s line in the sand at minus 30bps. Real yields are less depressed and 15bps below the ECB’s February pain threshold.


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