THE RETURN OF THE NEGATIVE

Edito Yesterday, the EU granted T. May an additional 2 weeks to get her Withdrawal Agreement passed. If—and quite probably so—it fails again, the UK will be heading for a no-deal Brexit on April 12. The FOMC turned out more dovish than expected, with downward revisions in the growth and inflation predictions, a median in the dots now pricing in a single hike in 2020 (and none in 2019) , and a halt to the balance sheet normalisation scheduled for October. Disappointing Eurozone PMIs completed this picture and fed the massive bull flattening of yield curves, sending the 10y Bund below the 0% threshold, and the T-Notes below 2.50%.