Dear Reader,

Here is an overview of today's economic news and market action:

• Cautious mood to start the week on markets …
• Bond yields rise across the board, most notably in the US …
• Dollar holding a somewhat firmer tone …
• Sees EUR/USD open in the bottom half of $1.09-1.10 …
• GBP/USD is just below the $1.24 mark …
• EUR/GBP is changing hands in the lower half of 88-89p …

A Cautionary Tale

The latest quarterly update from the IMF on the outlook for the world economy published last week saw little change to its forecasts from those issued in January and last October.

Storm Clouds Gathering

• The latest quarterly update from the IMF on the outlook for the world economy published last Tuesday saw little change to its forecasts from those issued in January and last October.

• Economic data have generally surprised to the upside in first quarter, helped by easing inflation. However, possible credit crunch and tighter lending standards new risk to activity