Good morning. Yesterday US equities were under pressure coming into the afternoon’s Fed decision. The weakness increased as the takeaways turned hawkish. The S&P ended the day down 1.4% while Treasury yields jumped post-meeting. The weakness continues this morning as US futures are at their overnight lows with global yields ripping higher. Iran responded to yesterday’s strike on its Pars gas field by hitting multiple targets in the Middle East, including Qatar’s huge Ras Laffan LNG plant. President Trump posted last night that no additional strikes on Iran’s energy facilities were planned, however. Macro junkies have lot to digest this morning as Japan, BOE, Riksbank and Swiss Central Bank all announced policy decisions- all maintaining - while the ECB’s announcement comes just before the US open.

Yields are extending their climb globally, including a massive move in the UK where the 2yr is up over 30bp. In the US, the 2yr is up 10bp on a big Bear flattener (10y +4bp). The US Dollar Index is slightly lower, just below 100. Jobless claims fell to 205k, down from last month. European equities are sharply lower. Japan’s Nikkei fell over 3%. The BOJ left rates unchanged as expected, while gas prices in Japan have hit a record high. President Trump and PM Takaichi are meeting today in D.C.

The energy complex continues to ascend. Brent is up 5% but WTI is flat while Dutch natural gas jumps 20%. Precious metals are sharply lower as yields rip, crypto is faring relatively better but still down while Ag is flat to modestly higher.