London Stock Exchange will offer trading of traditional financial assets on the blockchain. LSE stressed that it is not building anything around crypto-assets. It is using digital technology to make the processes of issuance, trading, reconciliation and settlement that are slicker, smoother, cheaper and more transparent, initially for the private markets.

Money-market fund assets climbed to an all-time high of USD 5.57 trillion. Reasons: the economic outlook and Federal Reserve's decision to raise its interest rate to 5.5%, the highest in 22 years. Money funds have been quicker to pass on the benefits to investors than banks. Investors can earn more than 5% on risk-free assets like Treasury bills.

While many investors snapped up money market products to take advantage of rising rates, BlackRock’s president Rob Kapito expects much of these $7 trillions are poised to shift into bonds. “There are trillions... that are ready, when people feel rates have peaked, to flood the market and we need to position ourselves to capture that,” said Kapito.

APG, one of the world’s largest asset managers, said its pension fund clients were shying away from China due to geopolitical risks. The comments come as other large pension funds pull back from China. European markets have gained more allure for investors. APG is no longer pulling money out of Europe and exploring new asset classes.

Investors have bet that the Japanese central bank will increase its rate. That has led to higher Japanese bond yields. Japan’s life insurers, with assets of $2.9 trillion, sold a record $107 billion of foreign bonds sending a chill through foreign bonds markets. The next wave of foreign bond reductions could more squarely hit corporate bond demand.

Influx of cash following a crisis at regional lenders failed to offset the steady outflows to money market funds that now hold a record $5.2 trillion from $4.6 trillion a year ago. Due to high interest rates, banks earn more on loans, but will need to start offering higher rates to depositors, which will lower their profits. The turmoil has also weighed on bank stocks.

Inflation-linked US Treasury Series I bonds sales topped $40 billion as investors looked for ways to shield their cash from rising prices. The interest rate has two parts. The fixed rate is set by the Treasury for the entire lifetime of the bond. The variable rate is set twice a year and depends on the consumer price index. Each American can buy up to $10,000.

Money market funds (MMFs) invest in short-term debt products. In Europe, investors put €17.7 bln into MMFs in March, much less than $367 bln in the US. European MMFs have grown to €1.5 tln. Only around 40% are denominated in euros and they are focused more on bank debt than treasuries. Taking euros out of banks to put it in MMFs is pointless.

Companies sponsoring well-funded pension schemes can offload their obligations to insurance companies. 5,200 boards of trustees, with advisers and managers will be replaced by 8 insurers. Illiquid assets that are difficult to value, and processing of data of so many people will slow down this process, but the UK's financial landscape will change.

American workers are keeping large chunks of their retirement savings in cash to protect themselves from another slump in the stock market. It was surprising to see how fearful millennials were in terms of being invested in the market. Sticking with cash will make it harder for millennials to accumulate the $1.3 million needed to retire comfortably.

Paul McCulley: “We always refer to Treasuries as the world’s safest asset. That’s from the standpoint of credit quality. That’s not from the standpoint of asset price stability. There’s a huge difference.” Treasuries posted their worst losses since at least the early 1970s. Another issue is liquidity. In the past month, it has been “significantly compromised.”

Countries like France and Poland support nuclear, while Germany and Austria oppose it. Ursula von der Leyen said that only “cutting edge” nuclear technology such as small modular reactors might get access to simplified rules and incentives in the EU’s net zero Industry Act and that it would not be eligible for all the benefits of the legislation.