KRW likely to recoup more of year-to-date losses along with yuan appreciation in coming weeks, says Scotiabank
China likely to maintain full year growth at 6.0 pct in 2019, unless GDP growth falls below 5.5 pct y/y in Q4, says ANZ Research
Australian bonds slump after U.S.-China trade tension disturbs investors once again; Sep labour report disappoints
China’s CPI-PPI divergence widens to 4.2ppt y/y in September, shows negative correlation after 2016: ANZ Research
Swedish jobless rate remains unchanged at 7.4 pct in September, wage growth unlikely to pick up soon
Australian bonds suffer tracking U.S. Treasuries on hopes of successful Brexit deal; September labour report eyed
German bunds narrowly mixed after October ZEW economic sentiment improves, eurozone September CPI eyed
EM Asian currencies likely to prop up as U.S. and China remain on track to reach a partial trade deal, says Scotiabank
BI likely to lower policy rate by 25bp to support growth amid increasingly fragile global economy, says Scotiabank
Australia’s rise in September employment remains smallest in seven months; jobless rate likely to drift higher in near-term
Australian bonds jump post release of RBA September meeting minutes; August employment report eyed
The Australian government bonds jumped during Asian trading session Tuesday after the release of the Reserve Bank of Australia’s (RBA) September monetary policy meeting minutes, while investors keep a close eye on the country’s employment report for the month of August, scheduled to be released today by 01:30GMT for further direction in the debt market.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 6 basis points to 1.135 percent, the yield on the long-term 30-year bond also slumped nearly 6 basis points to 1.715 percent and the yield on short-term 2-year suffered nearly 4 basis points to 0.887 percent by 04:50GMT.
Members commenced their discussion of the global economy by noting that business conditions in the manufacturing sectors in many economies had remained subdued. They discussed the escalation of the US–China trade and technology disputes, which had intensified the downside risks to the global outlook.
Members noted that weak external demand and heightened geopolitical uncertainty had contributed to lower growth in business investment in many economies, including the United States, the euro area and the United Kingdom. These economies had also recorded declines in investment intentions.
Members commenced their discussion of financial markets by noting that government bond yields had declined and were at record lows in many countries, including Australia. Volatility and risk premiums in global financial markets had increased in August, following the escalation of the disputes between the United States and China and disappointing economic data releases in Germany and China.
The persistent downside risks to the global economy, combined with subdued inflation, had led a number of central banks to reduce interest rates in recent months and further monetary easing was widely expected.
Meanwhile, the S&P/ASX 200 index edged tad 0.19 percent to 6,658.50 by 05:00GMT.