A private ($30 bln) “rescue” of First Republic Bank A consortium of 11 large banks helped to ease fears about a full-blown financial crisis. They were rewarded for their efforts yesterday as investors returned to Wall Street with a higher risk appetite, which lifted the major indexes dramatically. USA100 jump 2.48% And is up 7.95% from Monday’s nadir, the US500 Advance 1.76%The, and USA30 This was 1.17% firmer. This week, the risk-off mood that circulated around the world this week has cooled. Asian markets They are also more stable (Hang Seng At +1.44%) and European FUTS They are also in positive territory.
USD & Treasuries have cooled as Get the best yields recover. The 2-year rose 27 bp 4.155% The 10-year yield was 12 bp higher 3.569%Recovering from the 3.5% and 4.00% levels, respectively. The curve bear has flattened. -59 Bp starting at -44 Wednesday’s bp and versus -108 A week ago, bp
The ECB announced a 50 bp rate increase. Despite the turmoil in financial markets, it remained steadfast. However, the guidance regarding future moves was dropped and the ECB stated that future decisions would be dependent on data. Ms. Lagarde’s Press Conference highlighted the data dependence approach.
US Data & Overnight: Weekly Claims from the United States fell again (192k vs. 212k) and the Housing Data was…