Investors favor risk assets today. Global stocks are moving higher in the wake of the pre-weekend US rally that saw the S&P 500 close at record levels. Bond yields are mostly firmer, again with US move in response to the robust employment report setting the tone in Asia. European bonds participated in most of the pre-weekend move and are consolidating today with a slightly heavier tone. UK Gilts are outperforming, with a new record low of 64 bp on the benchmark 10-year issue. The Nikkei's 2.4% rally was the biggest in nearly a month. It gapped sharply higher, leaving a three-day island in its wake, and closed on its highs. ... (Read the full story)
