Equities jitters have helped to steepen curves, though all within prior ranges and a 10y UST yield above 4%. As 10y Bunds richen versus swaps, the swap rate remains near the upper end of its range while the back end is sensitive to Dutch pension fund news. Meanwhile, latest TIC data show decent buying of US assets, including foreign demand for Treasuries
A selloff across US Big Tech names dampened market mood yesterday, triggered largely by mounting doubts over the AI boom. An MIT report revealed that 95% of companies investing in generative AI have yet to see returns, while OpenAI CEO Sam Altman himself warned that some sector valuations were "insane." The comments may have been a wake-up call for investors, sparking a sharp pullback in high-flying names.
ICE has decided again not to include the EU bonds in its sovereign indices, sending EU speads wider. In the broader context EU bonds are still part of a considerable smaller AAA-universe since the last US downgrade
The UK CPI was weaker than expected in February at 2.8%yr compared to 3.0%yr in January. Core inflation edged down from 3.7%yr to 3.5%yr, but services inflation held up at 5.0%yr. However, decrease in both was mainly driven by weaker core goods inflation, while services inflation, which the BoE officials follow closely, was unchanged at 5%yr.
