Aussie Bonds Follow Global Yields Higher on Oil, Eco Data: NAB
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- Aussie bond market is following global bond yields higher, according to note today from NAB.
Alert: HALISTER1- Factors supporting higher yields include:
- Anticipation of a freeze or cut in oil production
- A Clinton victory is looking more likely, and so market has firmed up Fed rate-hike expectations
- Global economic data are surprising on the higher side of expectations
- There’s uncertainty around foreign demand for U.S. Treasuries given hedging costs
- Australia-U.S. 10-year yield differential has widened in the past two weeks in part because market has been making room for the new 30-year bond issuance
- NOTE: Pricing for 2047 bonds expected today in Australia’s first ever sale of 30-year notes
- Yield on 3-year bond rises to 1.748% today, highest since May 3, while 10-year yield touches 2.281%, a level unseen since June 24
Source: BFW (Bloomberg First Word)
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UUID: 7947283