What’s in Today’s Report:
- Yield Curves and Real Rates
Markets are trading risk-on this morning after reported progress in ceasefire talks between Russia and Ukraine.
Russian officials said that the “primary objectives” of the latest round of peace talks with Ukraine have been completed and a deal may be announced in the coming hours which is driving stocks higher globally.
Looking into today’s session, there are a few economic reports due to be released: Case-Shiller Home Price Index (E: 1.0%), Consumer Confidence (E: 107.0), and JOLTS (E: 11.10M) while several Fed officials are scheduled to speak: Williams (9:00 a.m. ET), Harker (10:45 a.m. ET), and Bostic (6:30 p.m. ET).
There is also a 7-Yr Treasury Note auction at 1:00 p.m. ET that could move yields and more specifically impact the 10s-2s yield curve spread which has compressed down to single digits this morning.
Bottom line, the market’s primary focus is on Russia-Ukraine peace talks today and any meaningful progress towards a ceasefire will continue to support risk-on money flows while investors will watch economic data and Fed speak for any further signs that shift to a more aggressive policy stance is beginning to hurt growth.
Sevens Report Q1’22 Quarterly Letter Coming April 1st
The Q1 2022 Quarterly Letter will be delivered to advisor subscribers on Friday, April 1.
With several key macro issues coming to a head over the next three months, we believe the second quarter could be just as volatile as the first quarter.
We deliver the letter on the first business day of the new quarter because we want you to be able to send your quarterly letter before your competition (and with little to no work from you).