The 2s/10s curve is around 22 basis points steeper this week. Excluding the U.S. regional banking sector shock in March, that would be the biggest weekly steepening since April last year, bigger than anything around the pandemic, and one of the biggest in well over a decade.
The 10-year and 30-year yields are at their highest levels since November, comfortably above 4.0%, and the latter is on track for its biggest weekly rise this year.
The S&P 500 is having its worst week since March, down 1.7% and only its third down week in 12, and the MSCI World index is on a similar track, already down more than 2% on the week.
Global currency market and S&P 500 equity volatility are the highest in two months, and implied volatility in dollar/yen trading is registering its steepest weekly rise since March.
Asian stocks ex-Japan have underperformed this year, so the week isn’t looking quite so alarming. Still, the MSCI Asia ex-Japan index is down 2.5%, wiping out all the previous week’s gains and poised to register its worst week in six.
