“Overall this points to a stabilizing but still fragile ETF demand backdrop, where investors are no longer accelerating exits but are gradually repositioning capital, providing a potential floor to downside,” the firm said.

The other notable dynamic is the decoupling of the U.S. two-year Treasury yield, which is sensitive to Fed interest rate expectations, and WTI crude oil futures. While oil prices have collapsed, the two-year yield has strengthened, hovering at 4.21% as of this writing, the highest since February 2025. (Check the Daily Signal.)

The decoupling indicates that oil and geopolitical headwinds for risk assets have been replaced by Fed rate-hike expectations. It’s possible markets expect the second-order effects of the March…