Australia’s demand for mortgages picks up sharply in response to rate cuts in June and July, RBA unlikely to be impressed
Government bonds likely to benefit less from ‘safe haven’ inflows going forward due to worries over valuation and volatility, says DNB Markets
China’s domestic activity continues to deteriorate in August, credit demand lacklustre amid uncertainty
USD/CNY seen to decline towards 7.0 as US-China Washington talks likely to achieve a breakthrough, says Scotiabank
EM Asian currencies likely to rally further during rest of September, remain susceptible to Fed’s monetary policy stance: Scotiabank
Australian ANZ-Roy Morgan consumer confidence falls 1 pct last week, inflation expectations remain stable
Australian bonds slump as positive U.S. data aid markets, easing trade tensions provide modest support
German bunds slump ahead of ECB President Draghi’s speech, June manufacturing PMI
The German bunds slumped during European trading session Wednesday ahead of a speech from European Central Bank (ECB) President Mario Draghi, scheduled to be delivered today by 14:00GMT and the country’s manufacturing PMI for the month of June, due to be released on June 21 by 07:30GMT for further direction in the debt market.
The German 10-year bond yields, which move inversely to its price, jumped 3 basis points to -0.292 percent, the yield on 30-year note also surged 3 basis points to 0.301 percent and the yield on short-term 2-year traded 3-1/2 basis points higher at -0.708 percent by 10:55GMT.
After yesterday’s market-moving comments from Mario Draghi, the ECB’s Sintra Forum on Central Banking will conclude today with further sessions on the future of EMU, including a panel discussion to be chaired by Executive Board member Benoît Cœuré, as well as closing remarks from the ECB President, Daiwa Capital Markets reported.
Data-wise, the news will be relatively prosaic, with figures on construction output and balance of payments data for April. With production in the sector up 0.2 percent m/m in Germany but down 2.3 percent m/m in France, a second successive monthly decline in overall euro area construction output seems highly likely. Meanwhile, in the bond market, Germany will sell 30-year Bunds, the report added.
Meanwhile, the German DAX traded flat at 12,333.68 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Euro Strength Index remained slightly bearish at -78.47 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex