5 in 5 with ANZ
5 in 5 with ANZ
Tuesday: Traders reduce Fed cut bets
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Tuesday: Traders reduce Fed cut bets

US Treasury yields hit fresh 2024 highs as rate cut expectations reduce; Philippines' BSP holds hawkishly; Aussie house prices set to keep rising; ANZ's Daniel Hynes on what is driving the gold rally

US Treasury yields hit fresh 2024 highs overnight as traders continued to reprice expectations for Fed rate cuts. The Philippines’ central bank holds but turns hawkish on inflation risks. Australia’s housing imbalance is expected to keep supporting prices.

In our bonus deep dive interview, ANZ Senior Commodities Strategist Daniel Hynes explains what’s driving gold’s stunning rally.

5 things to know:

  1. US bond yields traded at their highest levels in 2024 overnight. ANZ Economist Bansi Madhavani says market pricing is heading towards only two cuts being expected this year. Meanwhile, Bangko Sentral ng Pilipinas held its policy rate at 6.5%, warning that upside inflation risks had increased.

  2. Taiwan’s annual CPI inflation growth is expected to slow to 2.5% in March from 3.2% in February. That’s ahead of price pressures set to feed through in coming months from electricity fare hikes.

  3. The big number global markets are watching for this week is US CPI inflation in March. ANZ Senior International Economist Tom Kenny is expecting core CPI to rise 0.2% for the month, which is just below the market consensus on 0.3%.

  4. The yen nudged a 34-year low of 151.96 to the dollar, perilously close to the 152 threshold seen as a potential trigger for intervention. ANZ Head of FX Research Mahjabeen Zaman is sceptical about intervention at that level.

  5. In Australia’s, housing lending excluding refinancing rose 1.5% in February, while building approvals fell 1.9%. ANZ Australia Senior Economist Blair Chapman says there remains a demand-supply imbalance in housing, which will push up house prices through the rest of this year.

Cheers

Bernard

PS: Catch you tomorrow with a look ahead to the Reserve Bank of New Zealand’s Monetary Policy Review.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.