SGD

• Bond yield plunge. Extreme moves in bonds with US yields falling sharply (2yr down another ~60bps) as the Fed rate outlook is radically repriced.• Weaker USD. The adjustment has weighed on the USD. AUD is higher, though it is little changed on the crosses, illustrating how USD-centric it has been.• US CPI. Markets may have moved too far when it comes to Fed expectations. US CPI released tonight, another strong result could generate more volatility. The turmoil stemming from the US regional banking issues has continued despite efforts from authorities to try and contain contagion and macroeconomic risks. In...

• US bank woes. SVB developments are weighing on risk sentiment, with US yields falling sharply. The policymaker response is in focus.• Data flow. Another solid US labour report. US CPI and retail sales this week. If SVB is contained, fundamentals point to rate expectations snapping back.• AUD holding. AUD remains around ~$0.66. These are several US, global and Australia data points this week that should keep AUD volatility elevated. A bout of risk aversion is running through markets with the collapse of the US’ Silicon Valley Bank (SVB), and its broader potential fallout, weighing on investors’ minds. The undoing...