5 in 5 with ANZ
5 in 5 with ANZ
Monday: Markets eye rate cuts by ECB, Fed
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Monday: Markets eye rate cuts by ECB, Fed

US jobs growth of 303,000 beat forecasts; Treasury yield up to 4.4%; All eyes on US CPI to see if Fed can cut in July, then ECB for sign of June cut; Kishti Sen on Fiji's shortage of hotel rooms

Stronger than forecast US jobs growth pushed up Treasury yields on Friday night, but wage growth was more moderate, leaving the Fed still on track for a rate cut in July.

In our bonus deep dive interview, ANZ Pacific Economist Kishti Sen says Fiji needs to build four-and-a-half thousand new hotel rooms over the next decade.

5 things to know:

  1. The US 10-year Treasury yield rose nine basis points to 4.40% on Friday night after non-farm payrolls rose 303,000 vs expectations of around 200,000. But wage growth was in line with forecasts. ANZ Group Chief Economist Richard Yetsenga says markets are still pricing in a cut by the Fed in July.

  2. Research showing high migration drove some of the jobs growth helped soften the effects of the stronger-than-expected figure. ANZ Head of G3 Economics Brian Martin talks about that research.

  3. US CPI inflation data on Wednesday will be crucial for Fed-watchers, says Richard.

  4. Brian says the ECB is on track to cut in June.

  5. The RBA’s higher interest rates are working to curb consumer spending, says ANZ Australia Economist Maddy Dunk.

Cheers

Bernard

PS: Catch you tomorrow with a look ahead to more central bank decisions this week in New Zealand and Southeast Asia.

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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.