29 Mar 2023

As month-end flows begin to dominate price action in the financial markets, equity futures are preparing for a modest rally at the open, with bank shares and technology indices poised for the biggest gains. Treasury yields are little changed, the dollar is 0.3 percent higher, and other majors are turning in a mixed performance. Implied volatility levels remain relatively elevated as participants hedge themselves against another scare, but term structures are looking interesting: pricing suggests traders expect next week’s US data releases to trigger market movement, but ranges are then expected to tighten in the period preceding decisions from the Bank of...