US bond yields edge lower as rate cut expectations rise, but French Government bond yields have surged amid budget worries. Australia’s inflation jumps in July on higher electricity prices.
In our Deep Dive interview, ANZ Senior Economist Miles Workman runs through ANZ Research’s new forecasts for New Zealand’s economy.
5 things to know in 5 minutes:
US stocks rose overnight ahead of financial results from Nvidia, while shorter bond yields fell on renewed expectations for rate cuts, says ANZ Economist Bansi Madhavani.
France’s Government borrowing costs have surged in recent days, with its 30-year bond yield rising to 14-year high of 4.45%. Bansi says this has been triggered by the French Prime Minister’s attempts to drive through €44 billion of spending cuts and tax increases.
Australia’s monthly inflation indicator jumped to 2.8% year on year in July from 1.9% in June, well above expectations. ANZ Senior Economist Adelaide Timbrell says electricity, holiday and fuel prices led the rise.
Adelaide says the Reserve Bank of Australia will likely look through the volatility for now.
Australian construction work also beat market expectations in Q2, up 3% in the three months. Adelaide says while there was overall strength, the key public sector works input important for GDP remained weak.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of rates decisions in Korea and the Philippines.
