Markets:

• Gold up $19 to $2047
• US 10-yaer yields down 3.4 bps to three.94%
• US 2-year yields down 11 bps to 4.15%
• WTI crude oil up 77-cents to $72.72
• S&P 500 up 4 factors to 4783
• JPY leads, EUR lags

The massive query everyone seems to be asking for the second day is: Why such a powerful bid in two-years? Yields are down 25 bps for the reason that post-CPI peak on Thursday with a near-relentless bid. There was some ammunition with a softer PPI quantity in the present day and others are pointing to Yemen and the upcoming PCE report components however that is a stretch.

Curiously, different markets did not actually purchase into what was occurring in bonds, sparking discuss (unfounded as far as I can inform) that some form of fund blowup is likely to be behind the strikes. The US greenback initially fell with yields, boosting the euro to 1.0986 — a session excessive — but it surely slowly backed off to 1.0949 final.

Most greenback trades adopted an identical path of power early within the day with a reversal as Europe closed up store. Importantly, the US is closed on Monday so that might have created some lumpy flows.

As for Yemen, oil rallied to $75.25 early solely to slip all the best way again to $72.79 on regular promoting in New York. That is typical of geopolitical occasions that do not actually contact on oil provide (although I acknowledge the dangers). The US continues to say that it would not desire a warfare.

Have an exquisite weekend.