Global Daily: It Takes Two to TACO

The Iran war rages on and energy importers in Asia continue to look nervously at their ‘days cover’ dashboards for liquid fuels. Asian stocks are this morning lighting red candles with the South Korean KOSPI and the Japanese TOPIX particularly hard hit. Spot gold is down 2.7%, silver is down 2.7%, and the US Dollar index is little changed at 99.64. Bond markets are continuing Friday’s rout. The Aussie 10-year yield is up 11bps to 5.13% and the yield on Kiwi bonds is moving even faster after Fitch shifted New Zealand’s sovereign outlook from stable to negative late last week. Bond markets are now challenging energy markets for the mantle of most troubling price action.