- Markets are ending the week on a high note, with US index futures holding firm and European shares recovering two days of losses triggered by the Federal Reserve's intention for fast monetary policy tightening.
- The two-year treasury yield increased by five basis points, while the 10-year yield increased by one point, reversing some of the curve steepening seen in the aftermath of the Fed minutes released on Wednesday, which detailed plans to reduce the central bank's balance sheet by more than $1 trillion per year while raising interest rates.
- A dollar index rose for the seventh day in a row, hovering at its highest level since July 2020. After three days of losses fueled by plans to unleash millions of barrels of crude oil from strategic reserves as well as China's demand-sapping virus outbreak, oil stayed steady.
- Eurozone money markets now price in over 65 bps of ECB hikes by year-end, versus around 60 bps on Thursday IRPR.
- If the EU refuses Russian coal, the Kremlin said that volumes destined for Europe will be redirected to alternative markets.
- The Kremlin also stated Russia's special operation in Ukraine could be completed in the near future if goals are met and work by the military and peace negotiators is completed.
- According to Goldman Sachs, the ECB will raise interest rates by 25 basis points in September and December.
