5 in 5 with ANZ
5 in 5 with ANZ
Wednesday: US bond yields jolted lower
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Wednesday: US bond yields jolted lower

US Treasury bond yields fall 10-12 basis points after weak JOLTS and US consumer confidence data; US and European stocks up 1-2%; Australian inflation seen up a bit to 5.5%; Indian GDP seen strong

US bond yields fell sharply this morning and US stocks are up on hopes the Fed won’t have to hike again, largely due to weak jobs and consumer confidence data.

In part two of a bonus deep-dive interview, ANZ’s Senior Rates Strategist Jack Chambers explains why any RBA acceleration of its Quantitative Tightening won’t mirror the loosening effect of its Quantitative Easing.

5 things to know

  1. US bond yields fell 10 basis points and stocks rallied 1-2% after JOLTS and US consumer confidence data was softer than forecast. ANZ’s Head of G3 Economics Brian Martin says markets now see less chance of a Fed hike.

  2. US house prices rose again in June for the fifth month in a row. Brian says this indicates the rental parts of US inflation are likely to remain sticky.

  3. ANZ’s Senior Economist Adelaide Timbrell is forecasting Australia’s inflation rate to rise from 5.4% to 5.5% in monthly data due later today.

  4. Data out tomorrow is forecast to show India’s annual GDP growth rate rose to 8% in Q2 from 6.1% in Q2, thanks to strong investment spending.

  5. ANZ’s India Economist Dhiraj Nim says the Reserve Bank of India is helping to stabilise the rupee, which is bolstering investment spending and limiting imported inflation.

Cheers

Bernard

PS: Look out tomorrow for commentary on Australian inflation.

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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.