- Stocks in Asia dipped, and treasuries across the curve sold down, as investors questioned if central banks can hike interest rates without derailing economy. After the EU backed a bid to prohibit some Russian oil, the price of oil rose.
- Japan's and Hong Kong's stock markets both fell. The first day of trading after the Memorial Day weekend saw mixed results for US contracts. 2-yr note yields increased by 9 bps to 2.57%, while benchmark 10-yr yields increased by 10 bps to 2.84%.
- After EU leaders agreed to pursue a partial ban on Russian oil in response to the invasion of Ukraine, crude oil rose to $117 per barrel.
- Higher energy and food expenses are keeping prices on the rise globally, putting pressure on consumers. European bonds fell as German inflation hit a new high, putting further pressure on central bank policymakers to keep prices in check. The value of the dollar increased marginally.
- Despite efforts in containing the virus and restarted work at certain Shanghai plants, purchasing managers indexes for May showed service and manufacturing activity in China continuing to decrease under Covid lockdowns.
