Citi Raises TSMC Price Target as AI Chip Demand Strengthens Growth Outlook 
State of emergency in Crimea as Ukraine focuses pressure on ‘jewel in Putin’s crown’ 
Goldman Sachs Raises USD/JPY Forecast, Sees Yen Weakness Persist Through 2027 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
Bernstein Names IAG, Ryanair as Top European Airline Stocks Ahead of Earnings 
Gold Pulls Back After Hitting $4,180 as Geopolitical Risk Sends Crude Higher 
Bank of America Upgrades T-Mobile to Buy, Says LEO Satellite Fears Are Overdone 
Trump has made more than $1 billion from crypto in a year. How? 
In a rebuke to Trump, the Supreme Court rules that birthright citizenship is the law of the land 
Alcohol is one of the most dangerous drugs, yet its presence is ubiquitous in social settings and celebrations 
The chart attached represents CBOE $VIX that measures volatilities in US stock market and $SRVX that measures volatility in interest rate market.
What is $ SRVX?
- The CBOE SRVX Index is based on 1 year swaptions on 10 year U.S. Dollar interest rate swaps, a benchmark for the USD interest rate swap market. It measures the basis pints volatility of the forward swap rate as opposed to percentage changes in the rate, as done for VIX.
Key observations -
- Market still remains concerned over first rate hike by US Federal Reserve and is not coming to a general consensus over the probable path of rate increase.
- Dovish comments from FOMC successfully reduced VIX, which is also considered as fear gauge from around 17% to current just above 13.5%. However interest rate market remain cautious as volatility rose 82 basis points in December to above 93 basis points as of now.
Since market is yet to set sight over probable rate hike path, volatility and uncertainty over further rise in US dollar is here to stay for now. US dollar is trading at 97.07, down 0.3% today. US benchmark 2 year yield is hovering around 0.57%, down from its recent high around 0.70%
