From Marc to Market:
Overview: UBS takeover of Credit Suisse, the sale of Signature bank assets, and the daily dollar swaps could have helped stabilize the budding banking crisis. However, the wipeout of the additional tier 1 capital cushion (16 bln Swiss francs) at Credit Suisse has raised concern about the vulnerability of other such assets, which post-GFC is a $275 bln market in Europe. Asia Pacific equities was a sea of red, led by a 2.65% drop in the Hang Seng and 2.2% fall in its index of mainland shares. Japan and Australia's indices shed more than 1%. Europe's Stoxx 600 is off fractionally, but the bank index is off 2.5% (after a 2.7% sell-off before the weekend).
Benchmark 10-year bond yields are most 7-9 bp in Europe and the US. Ten-year yields were off 15-16 bp in Australia and New Zealand. The 10-year JGB yield is near 0.20%, down almost eight basis points today. The 10-year US Treasury yield is around 3.34%, while the two-year yield is off nine basis points to about 3.75%. The dollar is mixed. The Scandia and Antipodeans, along with the Swiss franc are nursing modest losses, while the yen leads the advancers with 0.5% gain, followed by sterling, which is enjoying a firmer bias. The Dollar Index remains within the range seen last Wednesday (~103.45-105.10) but is at the lower end. Gold punched through $2000 an ounce but has come back offered and is near $1984 in the European morning. May WTI continues the sell-off that began earlier this month from near $81. Today is traded to almost $64.35....
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