Macro update: Is fed tightening almost over? Here’s what the markets think

Global bond yields in free fall as U.S two year yields set for largest two-session drop since 1987, banks halted on exchanges.

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Quick Take

  • U.S. two-year yields set for the largest two-session drop since 1987, according to Zerohedge.
  • Since last night, S&P futures have given up all their gains; contagion has further spread into the banking sector as Credit Suisse is down 10% to new lows, and the flight out to weak banks is just starting.
  • Global bond yields have fallen worldwide; Japan's 10-year yield dropped to 0.3% from 0.5% — while Germany's two-year bond yield set for the largest drop on record.
  • Markets believe U.S. central bank will pause at the upcoming FOMC on 22nd march.
  • The implied peak rate is down to 4.8% from an expected 5.7%
S&P Futures: (Source: TradingView)
S&P Futures: (Source: TradingView)
Rate Hike: (Source: CME)
Rate Hike: (Source: CME)
Yields: (Source: Trading View)
Yields: (Source: Trading View)