Below is a snapshot of commentary from our Bespoke Morning Lineup that goes out daily at 8:30 AM ET.  Along with commentary and analysis, we also provide a 3-page PDF (sample here) with all the morning’s market news both domestically and internationally.  Sign up for a 5-day free Premium or Institutional trial to receive the Bespoke Morning Lineup in your inbox for the remainder of the week.  With your free trial, you’ll receive the rest of the Bespoke product line as well.  Subscribe quickly and easily here.

Snapshot: Busy morning today as we await ECB President Draghi’s 8:30 AM EST press conference; European data overnight was very strong from a growth perspective. The ECB’s rate decision was unchanged as expected at 7:45 AM. Asia Services PMIs beat overnight, while European PMIs mostly cooled (recap). European stocks ripped to session highs +88 bps from flat at 6:00 AM, helping S&P 500 futures to session highs, +56 bps, and Russell 2000 futures up +46 bps. European bond yields also moved higher on the risk free end of the spectrum with bunds +2.2 bps in yield on top of a massive +17.3 bps move higher yesterday. That 17.3 bps move higher in bund yields represents one of the worst days in developed market bond trading we’ve seen in years; it was the fourth largest move in interest rates for the bund over the last ten years and the largest since August of 2012.  Ahead of the ECB we’re seeing notable moves tighter in peripheral bond spreads after SGBs, BTPs, and PGBs all held relatively stable in spread terms during the selloff yesterday. In price action today, they’re all tighter by more than 10 bps.  Treasuries, much like yesterday, are taking their cues from European yield curves and are moving lower in price with bear flattening action; higher yields across the curve but highest at longer maturities.  The EUR is moving lower as are most USD crosses; EURUSD -26 bps while the Bloomberg USD Index is up 25 bps after bottoming around 2:00 AM. Commodities are mostly lower ahead of OPEC’s biannual meeting Friday and DoE supply data today that follows weak API inventory readings last night.  WTI and Brent both sit near session lows after getting wacked lower from 5:00 AM, gold and silver are both sitting at session lows, agricultural commodities are mostly lower, and copper is at session lows. Quick update on VIX: after the no-news plunge last Tuesday, the VIX has moved steadily towards the top of its recent range. We’re not wild about using technicals on that particular market, but a simple downward trend since last December is under pressure (chart) while the VIX curve has gotten a bit flatter over the last few days, suggesting here might be a good place to add hedges at slightly less painful negative carry (chart).

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