Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Senior Relationship Manager
Summary: Ermotti back, Alibaba breaks up
Good Morning,
The two key news over night are that Alibaba will be broken up it six single units which was very well received by traders as it was interpreted as a sign receding regulatory pressure, shares rise by app 15% .
UBS announced the return of Sergio Ermotti to steer the new behemoth through the takeover of Credit Suisse, Ralph Hamers will step down. Ermotti was the CEO of UBS from 2011 to 2020 and lead UBS through the recovery after the global financial crisis. In early trading UBS is seen to gain app 3%.
Deputy Bank of Japan Governor stated a change to the Yield Curve Control were in in scope.
Yesterday, Indexes had closed slightly lower but are making the losses up this morning. The USD Index gains a little off the lows as yields come off the lows. The 2 Year rises to 4.1% and the USD Index follows to 102.60. As EURUSD remains at 1.0830, GBPUSD 1.2320 and USDJPY 132. Gold and Silver are stable at 23.10 and 1962, Bitcoin 27500.
The agenda remains thin and markets news driven but as we see above, that still leaves them interesting.
Remain nimble.
Wednesday, 29 March
Thursday, 30 March
Friday, 31 March
Earnings on watch this week: