US Treasuries were volatile again overnight. The 10-year hit 5% and then slid in late New York trade, which dragged on the US dollar and boosted US stocks.
In our bonus deep-dive interview, ANZ’s Head of FX Research Mahjabeen Zaman looks at which currencies are winning and losing in the hunt for safe havens.
5 things to know
The US 10-year yield rose to a fresh high of 5.02% in early trade, and then slid to 4.88% as of 5am AEST on talk of a big short-covering investor. The S&P 500 was up 0.5% and the US$ fell vs most currencies. The A$ was firm at 63.42 USc and NZ$ was up at 58.52 USc.
PMI figures for Australia, Japan, France, Germany, the UK and the US later today will be a focus for markets, says ANZ’s Head of G3 Research Brian Martin.
Brian will watch the US PMI in particular to see whether it remains stronger than Europe.
Australian inflation data due out tomorrow may cause the RBA some discomfit, says ANZ Senior Economist for Australia Catherine Birch.
Catherine is expecting some big swings in various categories of Australian inflation.
Cheers
Bernard
PS: Look out tomorrow for a preview of Thursday night’s ECB decision.
