Headlines:
- The bond market is still the spot to watch for now
- No let up in the bond selling in European morning trade
- Fed to deliver back-to-back 50 bps rate hikes in May and June - Reuters poll
- Ireland says working on Russia oil embargo as possibly part of next EU sanctions package
- Macron and Le Pen set for presidency battle on 24 April election runoff
- UK February monthly GDP +0.1% vs +0.3% m/m expected
- SNB total sight deposits w.e. 8 April CHF 739.4 bn vs CHF 737.2 bn prior
Markets:
- EUR leads, JPY lags on the day
- European equities mostly lower; S&P 500 futures down 0.6%
- US 10-year yields up 3.6 bps to 2.751%
- Gold up 0.7% to $1,960
- WTI down 4.7% to $93.57
- Bitcoin down 4.1% to $41,042
It's still all about the bond market as we get things going in the new week. The selling continues as bond yields in the US and Europe continue to push higher, underpinning yen pairs. The Japanese currency tumbled across the board with USD/JPY breaking out to its highest since 2015 in a push above the 125.00 mark. The pair is currently trading up 1.1% at 125.70.
Besides that, the dollar is trading more mixed but little changed for the most part. The euro got some comfort from Macron's lead in the first round of the French election, holding around 1.0890-00 levels against the dollar after opening with a gap higher.
Equities are continuing the more dour mood from last week with European indices posting slight declines while US futures are also down after last week's drag. French stocks buck the trend amid the weekend election result.
Elsewhere, oil is coming under renewed pressure with Brent and WTI crude dropping by over $4 to around $98 and $93.50 respectively.
