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:
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.
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.
US CPI inflation data on Wednesday will be crucial for Fed-watchers, says Richard.
Brian says the ECB is on track to cut in June.
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.
