
With the Pacific G10 Macro Rates Team
Global Macro Overview
Last week equities and US 10y
Treasuries finished the week flat, with volatility metrics going further down as the VIX slid to 36. The main event of last week happened outside of
interest rates and foreign exchange markets as front WTI futures contracts traded negative for the first time touching -$40. Part of the move was a
technical one, as the rest of the curve failed to exhibit similar volatility, but oversupply in the oil market remained a concern with June WTI contract
down almost 40% on the week.