March 14, 2022
Good morning,
An eventful evening for markets last night is leading the way into an eventful week. More BS out of the Kremlin around “talks” led to a meaningful retrenchment in crude prices. This apparently led to a rout on bond prices as yields for the entire Treasury complex are at new cyclical highs (2.08% on the U.S. 10yr). That wipes out the 50 basis point pullback that followed invasion-related sanctions only 2wks ago.
Developed market equities seem to be taking comfort from the lower energy prices (Futures are +.50%), because the interest rate backdrop remains unfavorable for supporting elevated or expanded valuations.
Elevated uncertainty is still taxing the market. We continue to endure brutally volatile swings in all the asset classes.
Be well,
Mike