- The 10-year yield surged to its highest level since 2018 ahead of an inflation report that is expected to boost the case for aggressive Federal Reserve policy tightening. US equity futures and Treasuries stabilized on Tuesday.
- In premarket trading, contracts on US benchmarks erased losses to trade little altered, with big technology and internet companies marginally higher. In Europe, tech outperformed, with the Stoxx 600 index easing a 1.4% dip. For the second day in a row, Asian equities have fallen, while China has rebounded.
- As the global bond rout continued, US treasuries pared a decline that dropped the 10-year yield to 2.83%. The greatest winning streak in the dollar index since 2020 has come to an end. Both trends point to the Fed implementing its most aggressive monetary tightening since 1994. the euro weakened.
- Oil has made a minor rebound following a drop that saw it lose most of its gains following Russia's invasion of Ukraine. Virus outbreaks and mobility restrictions in China, which are part of a contentious COVID-zero plan, are jeopardizing demand.
- ZEW: The prospect of stagflation over the next six months remains.
- In Seoul, the chair of NATO's military committee stated that NATO has an open-door policy, not ruling out any new members.
- A Chinese health official said Shanghai COVID infections still not under effective control.
