Australia’s ANZ-Roy Morgan consumer confidence registers second straight weekly loss, inflation expectations stable
EM Asian currencies likely to prop up as U.S. and China remain on track to reach a partial trade deal, says Scotiabank
German bunds narrowly mixed after October ZEW economic sentiment improves, eurozone September CPI eyed
U.S. housing starts likely to have slowed slightly in September, residential construction to boost growth in Q3
Fed’s dovish stance and balance sheet re-expansion likely to weigh on dollar in months ahead, says Scotiabank
Australian bonds plunge tracking U.S. Treasuries on hopes of trade deal ahead of G-20 Summit
Australian government bonds plunged during Asian trading session Thursday tracking a similar movement in the United States’ Treasuries on hopes of a trade deal with China in the upcoming G-20 Summit in Osaka, Japan, scheduled to start from tomorrow, which repelled investors from buying safe-haven assets.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 7 basis points to 1.356 percent, the yield on the long-term 30-year bond also surged 7 basis points to 1.971 percent and the yield on short-term 2-year gained 6-1/2 basis points to 0.996 percent by 04:30GMT.
Global risk appetite wobbled slightly overnight as US president Trump warned of “plan B for China is to take in billions and billions of dollars a month and we’ll do less and less business with them”, OCBC Treasury Research reported.
This raises the stakes going into the Trump-Xi meeting at the G20 summit this Saturday. S&P500 closed slightly softer while the 10-year UST bond yield rose to 2.05 percent, the report added.
Meanwhile, the S&P/ASX 200 index remained 0.45 percent higher at 6,586.50 by 04:35GMT, while at 040:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bullish at 81.47 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex