Markets:
- Gold up $12 to $2035
- US 10-year yields down 6.7 bps to 4.51%
- S&P 500 up 2 factors to 5088
- WTI crude oil down $2.06 to $76.55
- AUD leads, CAD lags
Friday’s US financial calendar was utterly naked and if you happen to take a look at the closing ranges in FX, there’s hardly any motion to be seen. However below the floor it wasn’t so quiet as we noticed some sturdy USD promoting in Europe that was countered in early North American commerce earlier than markets chopped sideways late.
It wasn’t clear what was driving any of the strikes immediately, except for oil promoting on Gaza ceasefire hopes. Equities obtained some early bids on the FOMO observe via from yesterday’s enormous rally however by the point of the European shut, that gave method to revenue taking and shares completed flat.
The thriller was in bonds the place the long-end was strongly bid. US 30-year yields fell 9.3 bps and completed on the lows and the bottom shut since Feb 12. If there was some form of geopolitical bid, you’d count on oil to have moved in the other way however with Gaza inching in direction of peace, that was laborious to see.
One principle surrounded a German financial institution with publicity to US business actual property. That will probably be one thing to look at over the weekend, as bunds have been additionally strongly bid. I am positive we have not heard the tip of the saga relating to the money owed round emptying workplaces.
Maybe there’s something else happening or flows have been dominating however I will be preserving a eager eye on no matter was driving the bid in bonds and (to a lesser extent) gold.
