Bonds, Gold, and JPY are bid this morning as US equity futures are fading fast. The Dow and S&P futures are now back below pre-AAPL/FB levels and Nasdaq futures falling fast. Gold is back above $1300 (up over $30 from yesterday’s pre-Putin lows). Treasuries, led by the long-end, are rallying as safe-haven bids appear across the whole complex. 30Y yields are down to 3.53 – the lowest since July. JPY is bid once again as USDJPY tests back to the crucial 102 level.
First, a quick bulletin summary of the key overnight events:
- Treasuries rise, with 10Y and 30Y leading weekly gains amid increasing tensions in Ukraine; Russia’s military began new exercises on the countries’ border as S&P cut Russia’s sovereign rating to BBB-.
- Russia’s central bank unexpectedly raised its one-week auction rate to 7.5% from 7%; U.S. secretary of state Kerry warned Putin he’s running out of time to comply with an accord to ease tensions
- Obama said the U.S. and its allies “will follow through†on additional sanctions if there is no progress; plans to call European leaders today to discuss options
- Merkel spokesman Steffen Seibert said Russia’s actions in eastern Ukraine are “absolutely disappointingâ€
- Israel said it will suspend Middle East peace talks because of the Palestinian Authority’s reconciliation agreement with Hamas; Obama said no Middle East deal expected in next six months
- EU officials are preparing to pit the bloc’s banks against the toughest simulated recession that they have ever faced in a stress test, three people briefed on the matter said
- U.K. retail sales rose 0.1% in March, more than expected, as warm weather boosted spending on spring clothing
- A drunk passenger on board a Virgin Australia Holdings Ltd. plane destined for Bali, Indonesia, caused a hijack scare after trying to enter the cockpit
- Sovereign yields mostly lower. Asian stocks ex-Japan mostly lower; Nikkei +0.4%, Shanghai -1.00%. European equity markets fall; U.S. stock futures slightly higher. WTI crude and copper lower, gold gains
