• JPY leads, USD lags on the day
  • European equities lower; S&P 500 futures up 0.2%
  • US 10-year yields down 19 bps to 3.503%
  • Gold up 1.2% to $1,890.22
  • WTI crude down 2.4% to $74.84
  • Bitcoin up 10.4% to $22,183

What initially looked to be a relief and recovery period for risk trades quickly turned into a scramble for shelter in Europe.

Equities were very optimistic at the end of Asia trading, with S&P 500 futures sitting up by 80 points before quickly erasing all of that in the opening two hours of European trading. Banking stocks remain the worst-hit, with regional banks in the US suffering and that is spilling over to Europe as well.

Major indices in the region are down by over 2% at least with the banking index down by roughly 6% on the day. In the US, some regional banks are hit almost just as hard as SVB was last week - down by over 60-70% in pre-market.

As such, bonds ripped higher in a historic fashion with 2-year Treasury yields down by 40 bps to 4.182% currently - set for its biggest plunge since 2008. 10-year Treasury yields are also down by 19 bps to 3.503% and this sort of stunning intraday move isn't just limited to Treasuries.

German 2-year yields are also set for its biggest daily drop on record as it is down 45 bps to 2.62%, and 10-year German yields are down 27 bps to 2.22% in its biggest daily drop since 2011.

The drop in yields weighed on USD/JPY with the pair falling from 134.50 to 132.85. However, that also comes as the dollar is dragged lower across the board with markets hitting the reset button on Fed rate hike odds.

The greenback is seen lower across the board as it keeps its opening gap to the downside but has trimmed losses during the session. Well, let's see what drama US trading will bring about next.