• Meanwhile in markets, equities and bonds continue to recover from their post US Special Military Excursion extremes, even if Brent crude oil prices remain stubbornly above the $100 a barrel mark;

• In bond markets, US Treasury and Bund yields are down 1-2bps in a modest bull-flattening move. The 10-year US Treasury yield sits at 4.18%, and the 10-year Bund yield at 2.88%, both roughly 10bps below last Friday’s post-conflict highs. Periphery-Bund spreads have also eased from their recent peaks, though they retain about two-thirds of their earlier gains;

• Shifting to equities, the Stoxx 50 is up over a percent for the day, while S&P 500 futures are sitting on gains of half a percent. The Stoxx 50 has now clawed back about half of its peak decline but remains six percent below its all-time high. S&P 500 futures, down around four percent from their peak, have recovered roughly a third of their losses – essentially flat year-to-date at the moment; 

• Moving to broader market commentary, the broad dollar is essentially flat for the day, sitting on about half a percent gain over the past week. EURCHF has risen to 0.907, coming to within touching distance of the level it closed February at. The easing strength of the franc will be a sight for sore eyes at the Swiss National Bank, even if they were set to hold rates on Thursday regardless. Gold is currently trading just below the $5,000 mark, while its touted digital equivalent – Bitcoin – is trading at $74,225, up ten percent so far in March; 

• Looking ahead, markets will focus on US PPI data this afternoon, alongside the interest rate decisions from the FOMC and the Bank of Canada, both expected to hold. Tomorrow, the ECB, BOE, BOJ, SNB, CNB, and Riksbank are also set to maintain rates. Any prior guidance is now overshadowed by fears of Iranflation, keeping central banks on their toes.

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