Headlines:
- All eyes stay on the bond market
- Reminder: Most European (and other) markets will be off tomorrow
- ECB's Lane: May decision will depend on three factors
- Japan PM Kishida reportedly not seeking imminent change to monetary policy
- Germany February industrial production +2.0% vs +0.1% m/m expected
- Germany March construction PMI 42.9 vs 48.6 prior
- UK March Halifax house prices +0.8% vs -0.3% m/m expected
- UK March construction PMI 50.7 vs 53.5 expected
Markets:
- CHF leads, NZD lags on the day
- European equities slightly higher; S&P 500 futures flat
- US 10-year yields down 0.6 bps to 3.281%
- Gold flat at $2,020.04
- WTI crude down 0.3% to $80.36
- Bitcoin down 0.8% to $27,920
It was a quiet session as European traders are taking it slow and easy ahead of the Easter holiday starting tomorrow.
There is still a sense of trepidation but it seems like we will have to look to Wall Street to realise any of the caution and fear before the US jobs report on Friday.
The dollar was largely steadier and did little as major currencies also saw rather poor appetite for trading on the session. The aussie and kiwi were the laggards but that carried over from Asia as equities remain more tepid mostly.
European indices are holding slight gains but they aren't indicative of much after a retreat in the past two days, with the DAX and CAC 40 indices being held back at the highs for the year earlier this week.
The bond market is still the key spot to watch and all eyes are on 10-year Treasury yields to see if the break below the 3.30% threshold can be sustained. If anything else, this has been very much a placeholder session before US trading today and the key risk event tomorrow.
