- On Monday, sovereign bonds fell and equities were divided as economic worries like inflation and tightening monetary policy weighed on investors' minds.
- Two-year treasury rates jumped 14 basis points to 2.41%, leading rises across the curve, as traders priced in two full percentage points of Fed rate hikes for the rest of the year. Five-year note rates have risen beyond 30-year bond yields, indicating that some investors are expecting an economic slowdown, if not a recession.
- Bonds fell from Australia to the United Kingdom, while Japan's 10-year rate rose despite the central bank's announcement of two unlimited purchasing operations to keep rates within the maximum allowable range. The dollar rose, while the yen fell to a seven-year low.
- Futures in the United States were barely changed, while the Stoxx 600 in Europe climbed. The majority of Asian equities fell, with Chinese stocks plunging the most, as a viral outbreak stoked concerns about business interruptions and the impact on economic development. The overall picture showed that the equities rise from war-induced lows was coming to a halt.
- Of premarket trade, shares in major US energy companies sank as oil plummeted due to concerns about demand in China, the world's largest crude importer. Bitcoin went bullish for 2022, which boosted cryptocurrency-exposed equities. The price of gold dropped.
- When it comes to the possibility of a Putin-Zelenskiy meeting, the Kremlin says there has been no progress.
- Russian Foreign Minister Lavrov: Any meeting between Putin and Zelenskiy to exchange views currently, would be counter-productive.
- BoJ is to conduct bond-buying operations for consecutive days.
- Today at 2:45pm ET, Biden will present the FY23 budget.