Multi-Asset Strategy Daily

Geopolitical strikes in the Middle East have driven Brent crude toward $98/pb, pressuring global bond markets while resilient US labor data maintains a hawkish floor for UST yields. Equity markets remain mixed, with Japan outperforming on AI strength while European and UK markets monitor central bank pricing.

Key Takeaways

• 1.Middle East geopolitical tensions involving Iran have driven oil prices higher and pressured risk sentiment, causing bear-flattening in US Treasury yields.
• 2.Stronger-than-expected US JOLTS data and hawkish Fed rhetoric have pushed the 2Y UST yield back above 4.00%.
• 3.An ECB interest rate hike for June is almost fully priced in (~99%), with the market now focusing on the pace of tightening beyond the summer.

Table of Contents

• USD
• EUR
• GBP
• JPY
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