Morning 3-27

  Risk Off So Far today. Yesterday aggressive Spoo move into the close was driven by a $7 Billion market on close buy order, Likely Quarter end Pension rebalancing. Regardless of the reason it was quite an impressive move into the close. Gold  still trading with a but of Confusion, the April-June Calendar spread has had 3 very volatile days which is against the norm of that Spread which historically has very little volatility associated with it Bunds +121 yields lower 8 bps Long End Buxl +365 ticks BTps down ,Lower stocks higher bonds today, Also  Sovereign Spreads Trading a bit wider today as the trend of tighter taking a break today. Dollar sideways but short-term trend is down that is most important for all. Spoos -2.75%, Dax -3% Cac -4%. Moody’s issuing a downgrade warning for European banks see that Sector down almost 5 %. Always comes back to strength of European Banks,.S&P warning to Cut Mexico Credit rating Virus worries driving the risk off sentiment

Virus news:

  • The US now has the highest number of total cases with 85,991 vs China with 81,782 & Italy with 80,589
  • -US’s Fauci: We’re in escalating phase of v serious pandemic; we have to realize, prepare & respond; it is not, as it were, under control bc it’s still going up (ITC Markets)
  • U.K. PM Johnson tested positive for virus
  • Spain had its Deadliest Day with 769 Fatalities reported yesterday
  • Dallas Fed president Kaplan said GDP could drop 20% in Q2 Shocking numbers
  • Bloomberg with a story saying Italy’s infection curve starting to ever so slightly flatten

 Let’s see if anything Left in the Quarter end rebalance for stocks, Nice run higher this week in stocks to traders want to take a bit of Profit and take less risk over the weekend we shall see.Wouldnt a normal day unless some livestock closed with a limit move,Lean hogs limit down

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