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US Dollar Comes Back Bid, as First Republic Taken Over (Mostly) by JP Morgan
Most markets are closed for the May Day holiday. News that JP Morgan will acquire most of First Republic assets will be a relief for the markets. US equity futures are slightly firmer, and the 10-year Treasury yield is around three basis points higher, slightly above 3.45%. Recall that before the weekend, it has fallen from almost 3.55% to 3.42%. The market has more than a 90% chance of a quarter-point hike discounted for Wednesday. The year-end rate is still seen near 4.50%, but the market now recognizes about a 15% chance of a hike at the next meeting (June 14). Japan, Australia, and New Zealand markets were open. ... (full story)