Concerns surrounding the global economy have been one of the themes in markets this week and so far today, there isn't too much of a panic. The situation with First Republic is still striking the nerves for some but the rally in tech shares over the past few sessions is at least helping to calm the overall mood.

In the bond market, slumping Treasury yields since last week has been something to be wary about. But for today, there is a bit of a reprieve as well. I mean, at the end of the day, what matters more is the Fed outlook heading into next week and here is how things look like now:


We essentially went from pricing three rate cuts by year-end on 13 April to two rate cuts on 19 April, then back to three rate cuts again based on today's pricing.

That seems to be what is pushing the dollar lower, particularly against the euro and pound - whereby both central banks are still needing to raise rates further - this week.

For today, major currencies are mostly little changed except for slight gains seen in the aussie and kiwi. European indices are holding slightly in positive territory now with US futures still buoyed. S&P 500 futures are up 0.5%, Nasdaq futures up 0.7%, and Dow futures up 0.3%.

Looking at Treasury yields, 2-year yields are up nearly 6 bps to 3.981% while 10-year yields are up nearly 4 bps to 3.469%.

While that hints at a calmer market mood, it once again reflects rather indecisive sentiment in broader markets as the push and pull since last week continues for the most part.