END OF DAY REPORT MAY 4th

HIGHLIGHTS

White House OMB says she is hopeful we will find a path to avoid a debt default, will have to work through how long debt limit is extended for, prioritizing payments is a default by another name Nothing is off the table in terms of the potential length of debt ceiling extension.
ECB hawks reportedly gave up on a 50bps hike without much of a fight, according to Bloomberg sources
Western Alliance  says report of deal talks absolutely false, according to Bloomberg
US Treasury says they continue to monitor market developments in the regional banking sector, US banking system has "substantial liquidity and deposit flows are stable"
ECB President Lagarde (Q&A) says she is not makig any commitment to cut interest rates at any point in time
ECB President Lagarde (Q&A) reiterates, ECB is on a 'journey' and is not pausing
ECB Statement: Hikes rates by 25bps, as expected; 
Policy rate decisions will continue to be based on its assessment of the inflation outlook in light of the incoming economic and financial data 
Past rate increases are being transmitted forcefully to euro area financing and monetary conditions, while the lags and strength of transmission to the real economy remain uncertain. Future decisions will ensure that the policy rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2% medium-term target and will be kept at those levels for as long as necessary. 
Reiterates inflation outlook continues to be too high for too long. Headline inflation has declined over recent months, but underlying price pressures remain strong

SUMMARY

Things are not looking good. If the rates market is correct then there is something serious on the horizon. While we know that the debt ceiling limit is about to come to the forefront, the credit issue is expanding
 as other regional banks get bullied and the perception as to the state of our banking system starts to feel the strain. Look here for my take on this;
https://www.leviathanfm.com/blog/clowns-to-the-left-of-me-jokers-to-the-right