US equities ended yesterday with solid gains, as major banks stepped in to help FRB and the Fed reassuring markets that banks can easily seek liquidity through its discount window. That led to a solid rebound in stocks with bond yields also rising and we are seeing more of the same in the latter today as well.


2-year Treasury yields are up another 6 bps today to 4.19% but as evident by the ranges in the past week, we could very well see that extend considering the narrower range so far today.

Meanwhile, US futures are less enthused though with S&P 500 futures keeping flat alongside Dow futures. Nasdaq futures are also sitting thereabouts, up by just 0.1% at the moment.

We'll see how Europe takes to that but it sure looks like there is still a palpable tension in the air for now. And you can't really blame markets for that, as highlighted here.

In FX, the dollar is responding with a move lower as we observe slightly better risk tones. EUR/USD is looking to keep a bounce off its 100-day moving average this week, up 0.4% now to 1.0645, after the ECB delivered as expected yesterday.