5 in 5 with ANZ
5 in 5 with ANZ
Tuesday: US bonds volatile ahead of PMIs
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Tuesday: US bonds volatile ahead of PMIs

US 10-yr Treasury touches 5.02% & then slides back to 4.88% on short-covering talk; Focus on PMIs later tonight; RBA faces uncomfortable Australian inflation data; Mahjabeen Zaman on safe haven buying

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

  1. 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.

  2. 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.

  3. Brian will watch the US PMI in particular to see whether it remains stronger than Europe.

  4. Australian inflation data due out tomorrow may cause the RBA some discomfit, says ANZ Senior Economist for Australia Catherine Birch.

  5. 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.

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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.