2-year Treasury yields are seen up 15 bps today to 4.17%, keeping a bounce off the 4% mark seen yesterday. In the past three sessions alone stretching back to Thursday, 2-year yields were sent down by a whopping 103 bps. If that continued, perhaps it would've saved SVB. Jokes of course. 🤣
The exhale in the bond market is also seeing the dollar keeping steadier on the day, with USD/JPY seen up 0.4% to 133.75 at the moment. In the equities space, S&P 500 futures are up 21 points, or 0.5%, after a tumultuous and volatile trading session yesterday. While things might look calmer, let's not forget that there is still the US CPI data to come later in the day.
That will add to the mix alongside the prevailing market sentiment to start the new week.
It seems very much like smaller and regional banks in the US are the biggest losers of this whole debacle and guess who are the big winners at the end of the day? That's right. These guys:
