5 in 5 with ANZ
5 in 5 with ANZ
Friday: US$ & yields up on warm super-core inflation
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Friday: US$ & yields up on warm super-core inflation

US 10-yr Treasury yield up 10 bps to 5.69% after US super-core inflation above forecasts; US$ up to €1.0530; A$ down to 63.17 USc; NZ$ down to 59.28 USc; Khoon Goh on portfolio outflows from Asia

US Treasury yields surged again overnight after fresh signs of heat in US super-core inflation data. That pushed the US dollar up against the Aussie dollar, the Kiwi dollar and the euro.

In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh unravels a rise in portfolio outflows in Asia-ex China and looks ahead.

5 things to know

  1. US headline CPI inflation was 0.4% in September. Super-core inflation (services ex-shelter) of 0.6% was a bit warmer than expected, says ANZ’s Head of G3 Economics Brian Martin.

  2. The US 10-year Treasury yield rose 10 bps to 4.69%, lifting the US dollar almost a cent to €1.0530. The A$ fell a cent to open in Asian trade at 63.17 USc. The NZ$ fell a cent to 59.3 USc by 5 am AEST.

  3. The euro was also weak after fresh commentary from officials that ECB rates are on hold because of a weaker inflation pulse, Brian says.

  4. New Zealand’s general election tomorrow is focused on cost-of-living issues. Food inflation fell in September, but rent inflation firmed as net migration rose to record highs, says ANZ NZ Economist Henry Russell.

  5. India’s annual inflation rate fell more than expected in September to 5.02% from 6.83% in August, thanks largely to a 62% fall in tomato prices and higher subsidies for fuel. ANZ’s economists saw the fall reassuring the RBI.

Cheers

Bernard

PS: Catch you on Monday with a deep-dive interview with ANZ’s Chief Economist for Greater China Raymond Yeung on China’s Local Government finances at a tipping point.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.