Emerging-Market Stocks Eye Correction, Currencies Erase YTD Gain, Bloomberg, 3:55 AM EDT, 3/9/26

[progree]

1. Fortunately there's refuge in bonds, uh, well, maybe not

From Europe to Asia, bond markets plunge as oil vaults above $115, Reuters, 3/9/26

On Monday, government bond yields surged further as prices tumbled, adding to last week's dramatic moves.

They also price in a chance that the Bank of England will hike rates this year, having seen a March cut as fairly likely before the conflict. Expectations of Fed rate cuts have been pushed back.

Britain bore the brunt of the selling pressure, with two-year ​yields ​rising nearly 40 basis points, setting them up for their biggest daily jump since former ​Prime Minister Liz Truss's failed 2022 economic plan.

In Germany, yields ‌rose 11 bps, touching the highest since July 2024.

In contrast ((?? -progree)), longer-dated bond yields jumped in Japan, another energy importer, while the yen also felt the pressure from the surge in oil prices. [JP/]

.. . The moves were more contained in the U.S., the world's largest liquid natural gas producer, where two-year yields were last up 7 bps.