- Treasury yields continued to decline, while futures on the US market index varied as speculations that the global economy is about to see a steeper slowdown outweighed worries about high inflation and monetary tightening.
- The US two-year yield, which is most susceptible to changes in monetary policy, has been falling for the longest stretch since July 2022. A private US jobs report and purchasing managers' indexes added to the mounting evidence that the world's largest economy is in trouble, causing contracts on the NASDAQ 100 index to decline by 0.3% while a barometer of global stocks headed for a weekly loss.
- Worries about the financial system brought on by bank collapses have increased as a result of signs of sluggish activity. The possibility of a US recession has increased to 65%, according to economists, while the chances that the Federal Reserve will increase interest rates by 25 basis points in May is just 44%, according to the money markets. It is in contrast to the beginning of the week when they had predicted the jump by 70%. They now anticipate that the central bank will begin lowering rates as early as July.
- ECB’s Lane: A rate increase will be necessary if forecasts hold true by the time of the May meeting.
- Germany seeks to limit Brussels’ scope on national debt reduction plans - FT