It was another day, another sour day for risk sentiment as global risk sentiment had another dreadful day, marking the fifth consecutive day of declines (Eurostoxx), according to analysts at Danske Bank.
Key Quotes
“Despite the pressure on global credit, equity and commodity markets, US treasuries moved very little last night – the front end of the curve even came slightly under pressure and the 2s10s curve flattened. It underlines that it is difficult for the market to price out more hikes from the Fed as long as it is on ‘autopilot’. However, cracks are starting to emerge.”
“Last night, Fed member Kashkari (non-voter and dove) said that the Fed should pause its hiking campaign. That said, he is not going as far as Trump, who said he would like to see Fed rates lower.”
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