Oil prices fell after Saudi Arabia reassured markets it would use its oil supplies to stabilise prices. Treasury yields fell further on benign US inflation data and after more comments from Fed officials that rates can be paused.
In our bonus deep-dive interview, ANZ Senior Strategist David Croy looks at the weight of new government bonds being issued to pay for deficits that are helping to force up yields globally, including in New Zealand.
5 things to know
Brent fell 2% to US$86.90/bbl after Saudi officials said they had spare supply to stabilise prices. A New York Times report that Iran was surprised by Hamas’ attack also raised hopes the Hamas-Israel war may not widen to Iran.
The 10-year Treasury yield fell 6.5 bps to 4.59% as more Fed officials said rates could be paused. The US$ was solid. The A$ started Asian trade at 63.92c and the NZ$ was at 60.10c at 5am AEST.
ANZ’s Head of G3 Economics Brian Martin says underlying US Producer Price Inflation of 0.3% in September confirmed core inflation pressures have abated.
Brian says global markets are focused on US CPI data due tonight. The consensus is for monthly core and headline inflation of 0.3%.
New Zealand’s net migration of 110,200 in the year to the end of August was surprisingly strong and a new record high, says ANZ NZ Senior Economist Miles Workman.
Cheers
Bernard
PS: Catch you tomorrow with a review of US CPI inflation figures tonight, and what that means for global interest rates.
