Long bond yields rise in the UK to their highest levels since 1998 on fiscal fears. US long bond yields jump on Fed independence worries. Australia’s final GDP indicators are weaker. And New Zealand’s terms of trade hits another record.
In our Deep Dive interview ANZ International Economist Kishti Sen reviews how Pacific economies can reduce their combined infrastructure deficit.
5 things to know in 5 minutes:
Global markets continued a choppy start to September overnight. UK 30-year gilt yields rose to their highest since 1998, at 5.68%, on fiscal worries. The US 30-year was up 6.3 basis points at 4.981% on further worries about Fed independence. Gold rose another 2.1% and may have further to go, says ANZ Head of FX Research Mahjabeen Zaman.
In Australia today the focus is how the economy performed in the second quarter. ANZ Senior Economist Adelaide Timbrell says final preliminary data yesterday point to 0.4% growth instead of 0.6% as previously expected.
ANZ-Roy Morgan Consumer Confidence rose two points last week to 88.0. ANZ Economist Maddy Dunk says the rise was led by the ‘time to buy a major household item’ sub-index.
New Zealand’s terms of trade hit a new record high in Q2 as export prices rose and import prices fell. ANZ Senior Economist Matthew Galt says it wasn’t all good news though, as export volumes fell and import volumes rose.
South Korea’s annual inflation rate fell to 1.7% in August from 2.1% in July - below expectations. ANZ Economist Krystal Tan says a temporary widespread phone bill discount was behind the softness.
Cheers,
Bernard.
PS: Catch you tomorrow with a review of Australia’s Q2 GDP figures and what they could mean for the RBA.
