CROSS ASSET: Equity Risk Mood Turns More Adverse, G10 FX Sees Safe Havens Up
The equity mood is more risk averse in Asia Pac markets so far in Thursday trade, which is spilling ...
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NEW ZEALAND: "RBNZ GOV BREMAN: WE EXPECT THE ECONOMIC RECOVERY TO [...]
"RBNZ GOV BREMAN: WE EXPECT THE ECONOMIC RECOVERY TO STRENGTHEN AND BROADEN
RBNZ GOV BREMAN: DATA SUGGEST THAT THE ECONOMIC RECOVERY IS CONTINUING IN THE CURRENT QUARTER BUT REMAINS UNEVEN" - RTRS
NEW ZEALAND: "RESERVE BANK OF NZ GOV BREMAN: IF HIGHER OIL PRICES [...]
"RESERVE BANK OF NZ GOV BREMAN: IF HIGHER OIL PRICES PERSIST, THEY ARE EXPECTED TO RESULT IN SOMEWHAT HIGHERNEAR-TERM INFLATION THAN WE ASSUMED IN THE SEPTEMBER STATEMENT - [RTRS]
RBNZ GOV BREMAN: WEWILL ASSESS INCOMING DATA AND GLOBAL DEVELOPMENTS AHEAD OF OUR NEXT DECISION IN OCTOBER AND REMAIN FOCUSED ON THE OUTLOOK FOR INFLATION - [RTRS]
RBNZ GOV BREMAN: SIGNIFICANT RISKS TO THE ECONOMIC OUTLOOK REMAIN - [RTRS]"
BONDS: UST Futures Pare Early Gains, As Oil Steadies, RBA Gov To Speak
US Tsy futures sit off earlier highs, TYZ6 was last 106-01+, back to unchanged for the session and off earlier highs (106-04+). The tick up in oil futures, with benchmarks up around up around 0.50% currently, likely weighing at the margins. A reminder that Japan markets are still out today (returning Thursday), meaning there is no US Tsy trading during Asia Pac hours today. For US TSY futures, downside focus will rest at mid Sep lows around 105-21, although dips under 106-00 have been supported since late Aug.
- Aussie bond futures are holding a positive bias, the 3 and 10yr benchmarks up +2bps, holding close to session highs. ACGB yields are holding lower down 1-2bps, led by the back end. We have the RBA Governor's Fireside chat at 1pm local time coming up as the main focus point.
- In NZ, NZGB yields are down as well, 1-3bps off with the back end leading the move. An independent review of the RBNZ, which looked into the central bank's response during the Covid pandemic, has been released. Via BBG: "The reviewers found that while the RBNZ’s initial response to the pandemic was appropriate, it failed to recognize the strength of the economic recovery and maintained stimulus for too long, overheating the economy. “Greater emphasis should be placed on real interest rates in assessing and communicating the stance of monetary policy,” according to the report. “The Monetary Policy Statement should include real OCR paths implied by the nominal OCR paths and the associated inflation projections.”
