It didn’t take much really. There was a gradual turn in the risk mood early on but it quickly accelerated after Ukraine president Zelensky’s remarks here. That pretty much reaffirms some scenario where we will see most of the tensions centered around Donbass and after Russia is slapped with light sanctions, there’ll be a bit more playacting before it all fizzles down.
S&P 500 futures have now turned positive as risk trades in general are starting to see sentiment improve.
Elsewhere,
gold is down 0.5% to $1,895 from around $1,910 at the start of the session while we are also seeing Treasury yields creep higher on the day. 10-year yields are still down 1 bps to 1.92% but 2-year yields have jumped up by over 3 bps on the day to 1.50%. Both are up some 6 bps from the lows posted at the start of the day.