US rates review: Westpac

Quotes from Westpac Research:

- US 10yr treasury yields rose from 2.08% to 2.11% - a one-week high, the 2yr yield rose from 0.65% to 0.67%, and the curve retained a steepening bias. 

- Apart from expectations of Fed tightening, switching into higher-yielding corporate bonds may have been a factor. 

- A $21bn bond issue for Actavis Plc was the second largest in history, demand reportedly exceeding $90bn. The aggressive global search for higher-yielding assets is a phenomenon which has extended to the NZ$ bond markets during the past few months.