We had yields on US2s close above the recent consolidation range while the US10s did not make fresh lows but tracked losses. Yields on US10s treasury inflation protected securities closed sharply higher at 2.28% compared to 2.20% levels on Monday as the Employment cost Index rose 1.20% qoq following a 0.93% rise in the previous quarter. ECI rose 4.20% yoy. S&P CoreLogic Case-Shiller 20-City Composite Home Price Index for Feb showed prices rose 7.31% yoy. While the consumer confidence plummeted, market had eyes focused on the ECI, as the strength in the ECI followed the sticky prices of the services component of PCE, supporting the higher for longer Fed Fund Rate narrative.
Risk assets took a beating as US Equities closed sharply lower, Bond Yields sharply higher, Brent / Gold / Bitcoin all lower. Today morning risk sentiment in continuation with the US market mood looks fragile.
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