Bond markets rallied strongly overnight on growing hope the Fed won’t have to hike again. Global stocks rose too, along with the ‘risk’ currencies: the Aussie and Kiwi dollars.
In our bonus deep-dive interview, ANZ’s Chief Economist for Greater China, Raymond Yeung, pays tribute to former Premier Li Keqiang, the inventor of an unconventional measure of China’s economic growth rate.
5 things to know
The US 10 year Treasury bond yield fell as low as 4.62% overnight after Fed Chair Jerome Powell suggested short term rates might not have to rise again. It was around 4.68% near the US close.
The sharp fall in bond yields is making stock investors happier, but the Fed may not be thrilled. ANZ’s Head of G3 Economics Brian Martin says the Fed is relying on higher bond yields to do some of its heavy lifting to lower inflation.
The Bank of England also held rates overnight. Brian says the BoE sees weakening consumer confidence and spending, but may still have to hike again.
South Korea’s inflation figures yesterday were surprisingly strong, says ANZ Asia economist Krystal Tan.
US non farm payrolls growth figures due tonight are expected to show a fall to 180,000 in October from 336,000 in September. Brian is watching closely for revisions.
Cheers
Bernard
Have a great weekend. Look out on Monday for the NFP details and a preview of the week ahead.
