Global bond yields fell this morning ahead of the Fed’s keenly awaited interest rate decision due as we publish at 6am Sydney/Melbourne time.
In our bonus deep-dive interview, ANZ’s Senior Commodities strategist Daniel Hynes takes a closer look at Joe Biden’s momentous decision to pause building LNG export terminals in the United States.
5 things to know
US and European bond yields fell 10-15 bps on weaker than expected US private payrolls and Eurozone inflation data, but markets are focused on the Fed.
Tradables deflation dragged Australia’s annual inflation rate down to 4.1% in the December quarter, but stubborn domestic inflation will keep the RBA on hold for now, says ANZ Australia Senior Economist Catherine Birch.
Catherine sees yesterday’s data strengthening the case a bit for slightly earlier cuts, although ANZ Research still has the first one pencilled in for November.
Australian interest rate markets increased their expectations for cash rate cuts to 60 bps by the end of 2024 from 40 bps before the data, says ANZ Rates Strategist Jack Chambers.
New Zealand’s businesses still see a robust outlook for inflation, which will keep the RBNZ wary and means another rate hike can’t be ruled out, says ANZ NZ Chief Economist Sharon Zollner.
Cheers
Bernard
PS: Catch you tomorrow with the detail and analysis from the Fed’s decision and Chairman Jerome Powell’s news conference.
