Asian markets on Monday get their first chance to react to the extraordinary market moves on Friday that saw stocks and bond yields tumble, and volatility...
Asian markets on Monday get their first chance to react to the extraordinary market moves on Friday that saw stocks and bond yields tumble, and volatility and rate cut expectations soar following an unexpectedly soft U.S. employment report.
The two-year U.S. Treasury yield plunged 30 basis points, its steepest one-day fall since the U.S. regional banking shock of March last year. Its weekly fall of 50 bps is in line with those seen in the COVID-19, Lehman, 9/11 and Black Monday crises.The stampede to unwind carry trades helped push the yen up nearly 5% against the dollar last week - the Japanese currency has only had three better weeks in the past 25 years.
Traders are now attaching a 70% chance to the Fed cutting rates by half a percentage point next month, and are pricing in 115 basis points of easing by the end of the year and over 200 bps by next June.High yield corporate debt markets will be worth watching closely. This is where the first signs of a 'credit event' usually appear, heralding wider retrenchment across businesses, rising unemployment and ultimately recession.
Former Yorkshire cricketer Azeem Rafiq has told Sky News his family members in the Rotherham area have felt unable to go out and live normally amid the "frightening" violence. "It's petrifying going to sleep at night in your home and not feeling safe - it's not something you should be thinking about but that's the situation for most people right now.
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