There is a slightly calmer mood in the air as markets settle down following the panicky moves yesterday, in particular in the bond market. We are seeing a modest rebound in yields now, though nothing as staggering as what transpired in the day before. 10-year yields appear to be holding the line once again at its 200-day moving average:
There was also a notable steepening the yield curve but 2s10s remain rather deeply inverted, so it's tough to try and make this into something more - at least for now.
Looking to other markets, the reactions have been far less impactful even if the outlook is perhaps changing considerably. Major currencies remain in a more watchful mode ahead of the Fed next week while stocks are seeing just pure volatility take hold in the past session.
It'll be interesting to see how European traders take to things later, with investors seemingly worried that if the Fed rate hikes have broken something in the US, then perhaps the ECB's own tightening might do so in Europe as well.
The UK jobs report will come into focus later today but all eyes will stay on market sentiment before we get to the main event on the calendar, that is the US CPI data.
0700 GMT - UK February payrolls change
0700 GMT - UK January ILO unemployment rate, employment change
0700 GMT - UK January average weekly earnings
0730 GMT - Switzerland February producer and import prices
0800 GMT - Spain February final CPI figures
1000 GMT - US February NFIB small business optimism index
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
