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Some “War Trades” Edge Away From Extremes, Oil Still Bid

CROSS ASSET

A lack of weekend escalation surrounding the Russia-Ukraine situation, in addition to the apparent continued push for a diplomatic outcome, is seemingly allowing some markets to breathe a bit of a sigh of relief early in Asia trade. U.S. Tsys have cheapened a touch, while e-minis have recovered their post-settlement losses (the 3 major contracts didn’t break below their Friday low in early Asia dealing). Note that neither market is anywhere near fully retracing Friday’s “risk-off” moves. The commodity picture is a little different. Gold is little changed around $1,860/oz, while oil has been a little more reluctant to fade, with WTI & Brent futures printing through Friday’s highs in recent trade.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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