The selloff of US assets resumes as concerns about ballooning US Government debt pushed the 30-year Treasury yield over 5% to its highest level in 18 years. Indonesia cuts rates as currency worries fade. And New Zealand records a record trade surplus ahead of today’s Budget.
In our deep-dive interview, ANZ Economist Dhiraj Nim analyses recent trends in India’s trade flows as authorities there look to secure a trade deal with the US.
5 things to know in 5 minutes:
US stocks, the US dollar and US bonds were sold off sharply again as Donald Trump struggles to get his ‘big beautiful budget bill’ through the US Congress. The 30-year Treasury yield rose 11 basis points to 5.07%, its highest level in 18 years. That was after a poorly received auction of US 20-year Treasury bonds.
Elsewhere, UK inflation rose, but included one-off regulatory increases, says ANZ Economist Bansi Madhavani.Bank Indonesia cut its benchmark interest rate by 25 basis points to 5.5%, as expected. ANZ Economist Krystal Tan says the central bank has had to wait for the Rupiah to stabilise and strengthen against the US dollar.
Japan’s export growth fell to 2% year-on-year in April, from 4% in March, says ANZ FX Analyst Felix Ryan.
New Zealand posted a record monthly merchandise trade surplus of $1.4 billion in April. ANZ Economist Matthew Galt says high export prices in key sectors like dairy, and restrained imports, led to the record month.
It’s Budget day in New Zealand. ANZ Senior Economist Miles Workman expects the Treasury to maintain its forecast for an operating surplus in 2029.
Cheers,
Bernard
PS: Catch you tomorrow with full analysis of the New Zealand Government Budget.
