Been watching the Treasury market recently and noticed something interesting - the yield curve is flattening again while risk assets are getting hit pretty hard. The 10-year futures have been range-bound, and that spread between US Treasuries and German Bunds is staying flat around 134.5bp. Not seeing much appetite for upward curve positioning right now.

Equities across the board are under pressure. S&P 500 down a bit, and Asian markets taking it harder - Nikkei down 1.2%, CSI 300 down 1.3%. The yen's weakening against the dollar to around 153.37, euro holding at 1.1856, and the Dollar Index creeping up to 97.03. Gold moved slightly higher to near $4,943 while crude oil sits at $67.77.

What's interesting is the market seems to be pricing in stable short-term rates but getting nervous about longer-term growth. That's why you're seeing this flattening - money's rotating defensively. The real question is what happens if PCE data surprises to the upside. If that happens, we might see some upward curve pressure on the long end and this flattening could reverse. Risk aversion is definitely the theme right now.