• CAD leads, JPY lags on the day
  • European equities slightly higher; S&P 500 futures up 0.8%
  • US 10-year yields up 11.3 bps to 3.628%
  • Gold down 0.5% to $1,903.98
  • WTI crude down 2.1% to $73.24
  • Bitcoin up 2.5% to $24,845

It all started with things looking fairly calmer, as bond yields looked for a rebound ahead of European trading. Then, came a headline from Credit Suisse in which the bank says it found "material weakness" in its financial reporting for 2021 and 2022. That's not exactly the kind of statement you'd want to see at this point and markets reacted.

Or at least the bond market did.

2-year Treasury yields quickly fell from 4.18% to 3.83% as traders turned fearful again and that also saw a 27 bps dip in 2-year German bond yields right at the open to 2.42%. That set up a nervy open for Europe and induced more volatility swings but by the end of it, we are seeing calmer heads prevail - at least for now.

Credit Suisse shares may not be recovering yet but bond yields have risen drastically in a turnaround from earlier in the day. 2-year Treasury yields are now up 20 bps to 4.23% while 2-year German bond yields are now up 10 bps to 2.80%, as bond bears start to draw a line on the squeeze in the past few sessions.


In FX, USD/JPY was sent for a ride as it fell from 133.80 to 133.20 before recovering to push above 134.00 now - up 0.7% on the day. The rest of the major currencies space is rather muted, with the dollar trading little changed for the most part after its slight gains earlier have been pared.

With the US CPI data coming up later at 1230 GMT, brace yourselves for another round of volatility in North America trading.