•
Bond yields jump as Bill Gross says sell Bunds
– Tweeted
that shorting Bunds was the trade of a lifetime; Bund, Treasury yields higher
– Higher core
market yields likely to pressure EM currencies, gold
•
CHF worst-performing currency on extension of
negative rates
– Some public
funds that were exempted from negative rates now must pay them
– Move was
for equality, not policy; not really significant
– I expect
stronger CHF trend to resume as the surprise fades
•
NZD weakens on comments on monetary policy
– Monetary
policy to remain accommodative; currency rise is “unwelcome”
– I still
expect AUD/NZD parity soon
•
China, Japan PMIs fall
– China HSBC
PMI expected to be unchanged, but sinks lower into below-50 territory
– Japan PMI
below 50 for first time in nearly 1 year
– Weakness in
manufacturing exporters = bad for EM countries, commodity currencies
•
Today:
– Eurozone: PMIs
expected to improve, may boost EUR
– UK:
Retail sales forecast to decelerate a bit, could cause profit-taking in GBP
– US: Markit
PMI; new home sales for March; initial jobless claims
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