CROSS ASSET: Risk Appetite Improves, But Markets Moves Limited on Iran Headlines
A dose of risk appetite follows these headlines from a Senior Iranian Official: Oil edges off the daily high by ~50 cents on the more diplomatic language, which helps ease both the USD and US yields off their daily highs. * US 10y yield was trading at a new cycle high of 5.0685% just a few minutes ago, but markets have stabilised on these headlines. We know Iranian and US officials talked for several hours yesterday, and Rubio's view that the talks were "positive" is helping here. * That said, the pullback in yields still looks cautious: quite clearly no breakthrough here and the Iranian official warns that "many differences" remain - tempering a sharper market reaction. * E-mini S&P is off session lows, but the rally limited to 15-20 points.
A dose of risk appetite follows these headlines from a Senior Iranian Official: Oil edges off the daily high by ~50 cents on the more diplomatic language, which helps ease both the USD and US yields off their daily highs. 0685% just a few minutes ago, but markets have stabilised on these headlines. We know Iranian and US officials talked for several hours yesterday, and Rubio's view that the talks were "positive" is helping here. * That said, the pullback in yields still looks cautious: quite clearly no breakthrough here and the Iranian official warns that "many differences" remain - tempering a sharper market reaction.
* E-mini S&P is off session lows, but the rally limited to 15-20 points.