Market
Same dynamics were at play for a third session straight with US assets starting to discount the possibility of a stagflation rather than a goldilocks scenario for the US economy. Key US stock markets lost 0.50% for the S&P 500 and 1.35% for the Nasdaq. EUR/USD tested the YtD top at 1.0533 again, but failed to break beyond. US Treasuries extended their rally with US yields losing around 10 bps across the curve, falling below YtD support levels. The US Treasury’s $70bn 5-yr Note auction copied the success of Monday’s $69bn sale, stopping through the 1:0 pm WI and producing strong bidding metrics. A significant deterioration of US consumer confidence (February) highlighted current worries. The Conference Board gauge fell from 105.3 to 98.3 with especially the forward looking expectations index suffering. In particular, pessimism intensified about future employment prospects (DOGE?!), while a growing number…
