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Risk lead cross assets

CROSS ASSET

Equities continue to drive cross assets, with US Equities taking their cue from Europe.

  • There's been no real clear driver, just some positioning unwind, with the move looking more corrective then news driven.
  • Volumes are still on the low side, with the street preparing for the ECB (Thursday).
  • German and US treasury curve are bull flattening, with better buying going through in the longer end. US and German 5/30s trade at the low part of the range.
  • USD is brushing aside the move lower in US yield, and the currency finds a bid on the risk off tone.
  • USD is at session high versus EUR, GBP, CAD, as broader base buying goes through

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