The Day at a Glance | March 2 2021

The Top

· FED once again calls for calmness after recent adjustments were seen in sovereign debt markets.

· Biden and AMLO discuss migration, climate change and COVID-19 in first bilateral meeting; security and energy were not part of the agenda.

· Regulators in China expressed concern regarding possible financial bubbles in European and US markets, in addition to the Chinese real estate market.

· IMEF indicators don`t show improvement in the Mexican economy in February.

· Unemployment surprisingly increases in Germany (6%) amidst persistent quarantine measures.

Economic environment

President of the Richmond Federal Reserve, Thomas Barkin, reiterated that the central bank is not worried about the recent volatility seen in bond markets. In the first public statement made by members of the Federal Reserve this week, Barkin said that he`s more worried about the labor market. He considered that the upward movements recorded in mid and long term bond rates in the US are a natural reaction to an improved outlook on growth. Barking also didn`t consider that important inflationary pressures are going to be seen in the medium term and assured that he has not seen any intentions of prices being raised more than usual through conversations he`s had with local employers. Markets have stabilized in recent days after uncommon, upwards movements were seen in US market interest rates last week, something that adjusted prices of sovereign debt financial assets as a stronger economic recovery is now expected to occur. In the middle of this, the dollar (DXY) linked 4 consecutive sessions of upwards movements.