HomeContributorsFundamental AnalysisAU And NZ 10-Yr Bond Yields Decline After Drop In US Yields

AU And NZ 10-Yr Bond Yields Decline After Drop In US Yields

General Trend

  • Cautious equity and FX trading scene ahead of Thursday’s US CPI data.
  • Chip-related firms decline after weakness in the US.
  • S&P ASX 200 declines after reaching a fresh record high [Woolworths weighs on Consumer Staples; Financials also decline amid lower bond yields].
  • Nikkei opened lower and currently trades near the opening level [Topix Banks index drops amid a decline in UST yields; Eisai continues to support Pharma index; Air Transports rise after gains in the US].
  • Little initial reaction seen to mixed Chinese inflation data.
  • Shanghai Composite ended the morning session modestly higher (+0.4%) [Consumer Staples index has modest rise, the index declined 3% on Tues.].
  • Hang Seng has essentially remained flat; China Evergrande Group has remained in the headlines; There was also some focus on Great Wall AMC and Language.
  • Taiwan Semi may issue monthly sales this week.
  • Companies due to report during the NY morning include Campbell Soup, Daktronics, Lovesac, United Natural Foods, Vera Bradley.
  • US CPI data due on Thurs (Jun 10).

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • (AU) Reserve Bank of Australia (RBA) Assist Gov Kent: CPI unlikely to be sustainably in target range until 2024 at earliest.
  • (AU) Australia Jun Westpac Consumer Confidence: 107.2 v 113.1 prior; M/M: -5.2% v -4.8% prior (back to levels seen in Jan when things were impacted by significant lockdowns).
  • BKW.AU Guides FY21 (A$) EBIT 240-260M; Taking A$100M revaluation gain from Industrial JV.
  • (AU) Australia sells A$1.0B v A$1.0B indicated in 1.00% Nov 2031 bonds, avg yield: 1.5713%, bid to cover 2.67x.
  • (NZ) New Zealand Jun Preliminary ANZ Business Confidence: -0.4 v 1.8 prior; Activity Outlook: 29.1 v 27.1 prior.
  • (AU) Australia total weekly payroll jobs change for May 8th to May 22nd: +0.3% v -0.5% prior; Wages +0.6% v -1.3% prior.

Japan

  • Nikkei 225 opened -0.2%.
  • (JP) Follow up on Japan draft fiscal blueprint: Japan will maintain its goal of achieving a primary balance surplus by FY25, but reassess the timeframe by the end of the year due to the economic impact of COVID.
  • (JP) BOJ Dep Gov Amamiya reiterated will not hesitate to ease further if needed – financial press.

Korea

  • Kospi opened -0.1%.
  • (KR) SOUTH KOREA Q1 FINAL GDP Q/Q: 1.7% V 1.6%E; Y/Y: 1.9% V 1.8%E.
  • (KR) South Korea May Unemployment Rate: 3.8% v 3.6%e.

China/Hong Kong

  • Hang Seng opened -0.0%; Shanghai Composite opened -0.1%.
  • (CN) CHINA MAY CPI M/M: -0.2% V -0.1%E; Y/Y: 1.3% V 1.6%E; PPI Y/Y: 9.0% v 8.5%e (Highest since 2008).
  • (CN) China said to plan reforming deposit rate calculations for banks – financial press.
  • (CN) China Commerce Ministry (MOFCOM): Cannot be blindly optimistic about China Foreign Trade this year.
  • (CN) China PBOC sets Yuan reference rate: 6.3956 v 6.3909 prior.
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
  • (CN) China fined four banks a total of CNY5.3M related to property lending violations –Caixin.
  • 1928.HK Asian American Entertainment Corporation files a lawsuit alleging that Sands breached a contract for a casino license in Macau; seeking 70% of Macau profits since 2004 (implies $12.0B) – press.

North America

  • (US) Biden-Capital talks have officially broken down; Biden to move on to talks with groups of Democrats and Republicans – Punchbowl News.
  • (US) Weekly API Crude Oil Inventories: -2.1M v -5.4M prior.
  • ROBINHOOD.IPO Said to target IPO in July (prior end of June) – Press.
  • (MX) Mexico Dep Fin Min Yorio: Tax increases not planned in upcoming fiscal reform; Fiscal reform will include measures to improve tax efficiency and closing loopholes.
  • (US) Said that SEC Commissioner Peirce has warned against strict cryptocurrency rules – FT.

Europe

  • (UK) Chancellor of the Exchequer Sunak (Fin Min) said to be pushing for financial companies to be exempt from the G7 global corporate tax rate agreement – FT.
  • (UK) Said that a group of MPs has called to raise the minimum age to purchase tobacco to 21 from 18 – Press.

Levels as of 01:15ET

  • Hang Seng -0.1%; Shanghai Composite +0.3%; Kospi -0.8%; Nikkei225 -0.3%; ASX 200 -0.1%.
  • Equity Futures: S&P500 0.0%; Nasdaq100 +0.0%, Dax -0.0%; FTSE100 -0.2%.
  • EUR 1.2186-1.2171; JPY 109.53-109.41 ;AUD 0.7744-0.7733; NZD 0.7204-0.7189.
  • Commodity Futures: Gold +0.1% at $1,896/oz; Crude Oil +0.5% at $70.43/brl; Copper -0.4% at $4.52/lb.

 

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading