Bonds were ushered into the domestic session in moderately stronger territory thanks to a friendly policy announcement from the Bank of Japan and softer data in Europe.  The domestic session is off to a respectable start with PCE prices coming in roughly in line with expectations and perhaps a hair lower than yesterday's PCE data (inside the GDP data) might have suggested.

First Republic (FRC) is also back in the news this morning after taking the day off yesterday.  CNBC is reporting the FDIC is looking for a bank to facilitate receivership for FRC.  In simpler terms, one could say FRC has effectively failed and efforts are now focused on keeping the failure as orderly as possible.  If the stock market is any guide, investors aren't viewing this as surprising news with systemic consequences.

If anything, it's been European trading that's had the biggest positive influence on bonds in the US so far today.

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