No important events are expected today.

The yield on US 10-year government bonds is firmly fixed at 4.5%, which provides good support for the dollar. On the other hand, such a rapid growth of yields has led to the depreciation of bonds, which are in the portfolios of banks, pension funds and insurance companies, which is fraught with a financial crisis. Investors have been actively buying long-term bonds in recent years, as there was at least some yield on them, as opposed to short-term securities, where yields were below 1%.

As a result, over the period from 2020 to 2022, a huge number of securities were bought with yields of about 3%, while the current yield is 1.5 p.p. higher and investors have a significant drawdown in their portfolio. Against this background, we can expect a further decline in stock markets, which are strongly affected by the growth of yields on U.S. government bonds.

Recommendations: Sell 1.2175/1.2215 and TP 1.2100