US Treasuries sold off again overnight ahead of Non-Farm Payrolls. Investors are still worried about extra Government borrowing. The Bank of England hiked and the Bank of Japan intervened again. We also preview the RBA’s statement today.
In our deep dive interview, ANZ Commodities Strategist Soni Kumar explores whether India can grow demand for commodities fast enough to pick up the slack from a slowing China.
The 5 things you need to know
The Bank of England lifted its cash rate by another 25 basis points to 5.25%. Some had expected 50 basis points so the pound fell, and then rebounded.
The RBA publishes its Statement on Monetary Policy at 11.30 AEST. ANZ’s Adam Boyton says the RBA’s inflation forecast for 2025 will be crucial.
US Treasury bond yields rose to nine-month highs on continued fears about a US$1 trillion borrowing plan. That’s ahead of Non Farm Payrolls tonight. ANZ’s Tom Kenny expects a 200k rise.
The Bank of Japan intervened for a second time this week to slow the rise in the 10-year yield. The yen fell around a cent to 142.6 yen to the US$ as a result.
The Bank of Thailand is on hold for the foreseeable future because of slowing exports and tourism from China, ANZ’s Krystal Tan says.
Cheers
Bernard
