FAST FIVE: US Futures, Global Stocks Bounce As Oil Surges After Persian Gulf Tanker Attack
The move was mostly driven by a drop in inflation breakevens, as oil prices fell sharply after US inventory data showed a 2.2mn barrel build in stockpiles despite expectations for a drawdown.
Alongside the US-China uncertainty, Trump also re-injected doubts concerning the recent agreement with Mexico, saying that he could still take punitive action in 45 days if he chooses.
The 10 candidates each need at least 5% of the votes to progress to the second ballot on Tuesday, and if all of the candidates reach the 5% threshold, the one with the least support will be eliminated.
That latter view has certainly been supported by the market, with the five year-five year inflation swap rate dipping below 1.2% to a new all-time low.
For completeness, in Europe yesterday the STOXX 600 finished -0.30% yesterday while Bund yields fell -0.4bps.