Oil prices soared on news that Trump is imposing sanctions on Russia, targeting the country’s two largest oil companies. Futures are off slightly as algos contemplate the impact on inflation.

continued for members…

This could quite easily throw the equity markets into turmoil if it persists long enough to shift inflation expectations.

Currencies remain very quiet.

The big news, which has hardly made the headlines yet, is this sanctions business. With inflation fears still so prevalent, sanctions run the risk of upsetting any FOMC rate cut expectations.

The 10Y has reacted but remains broken down.

Stay tuned…