FOREX: Firm Risk Sentiment Persists, AUDUSD Extends Higher Highs Streak

BNP (19th Dec) 52/40ps, bought for 14 in 1k.

Washington Post report that "A handful of moderate Senate Democrats are considering voting to end what has now become the country's longest government shutdown, splitting the caucus as some colleagues to their left urge them to hold out. [...] A bipartisan group of senators is working to craft a deal in which Congress would pass three full-year appropriations bills to fund some agencies, along with a short-term bill that would reopen the rest of the government, according to four people familiar with the talks"

• US 10y yields inch to new daily highs on the back of that Washington Post story - testing 4.09%. In tandem, USDJPY edges higher, briefly printing 153.84. We note that much of that plan had emerged late yesterday - and while the move to end the shutdown is clearly gaining traction, it is still well short of any firm resolution in the very near-term.
• Core global FI markets tick lower, with TY, Bund and gilt futures to fresh session lows, but remain comfortably within week-to-date ranges given uncertainty whether a deal will ultimately be struck.

The Riksbank’s press conference (in Swedish) has started. Governor Thedéen re-iterates the main signals from the policy statement and MPU.

• The rate path presented in September is mostly intact.