You may not notice it when you look at how things are playing out in FX but the heavy selling in equities since yesterday and surging bids in the bond market are major developments in the past day. Here is a story that is going around right now that may be the cause.
That being there was a major selloff in Silicon Valley Bank stocks yesterday, which almost looks like a bank run all things considered. It plunged by 60% alone yesterday. But why is this important?
Well, SVB is arguably the most important capital provider to tech startups and one of the pillars of the community in that sense. Well, failure on their part will have larger repercussions as plenty of venture capital firms do rely on SVB for loans and liquidity operations.
That is most likely signaling financial distress in markets and as is always the case, the initial reaction is to pile into safety bets before getting a better understanding of the situation.