BONDS: Global FI Yields Pushed Higher, Gilts Underperform
May-15 09:34
Global FI yields have been under intense upward pressure this morning, with latest US-Iran rhetoric ...
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FOREX: DXY Consolidates Recent Decline, AUD Modestly Outperforms
Apr-15 09:33
- Risk sentiment is stable on Wednesday amid the cautious optimism surrounding the resumption of talks between the US and Iran in Pakistan. As such, net adjustments for crude futures and equity benchmarks have been relatively contained.
- The dollar index remains close to its recent lows as analysts appear to add conviction to bearish greenback views in the hope that Iran War risks may have peaked. The index has narrowed the gap to the Feb 27 97.61 close yesterday, a move below that level would erase the entirety of the war-related USD strength.
- AUD has modestly outperformed and hovers just below 0.7150, with markets remaining focused on the year’s peak at 0.7187. Conversely, EURUSD topside momentum has stalled above the 1.18 mark, with most recent ECB commentary pushing back a little on the case for an April hike.These dynamics have prompted EURAUD to fall to a three-week low below 1.65 this morning, with the cross remaining 6.25% lower on the year.
- A PBOC announcement of China raising the leverage ratio for bank overseas loans comes in the context of USDCNY hitting new cycle lows of 6.8156 - and looks like a step to re-balance cross-border lending flow towards overseas lending, promoting marginal capital outflow and therefore working against CNY strength.
- US Empire State Manufacturing data headlines a quiet calendar on Wednesday, with US trade prices, the NAHB housing index, and MBA Mortgage Applications also due. Several central bank governors are scheduled to speak, including ECB’s Lagarde, BOE’s Bailey, SNB’s Schlegel and RBNZ’s Breman. The Fed will release its beige book.
GREECE AUCTION RESULTS: 3.375% Jun-36 GGB
Apr-15 09:26
| 3.375% Jun-36 GGB | Previous | |
| ISIN | GR0124042764 | |
| Amount | E250mln | E300mln |
| Avg yield | 3.70% | 3.34% |
| Bid-to-cover | 2.03x | 2.62x |
| Avg Price | 97.255 | 100.289 |
| Low Price | 97.220 | |
| Pre-auction mid | 96.991 | 99.813 |
| Previous date | 11-Feb-26 |
AUD: EURAUD Slips to Three-Week Low, AU Employment Data Highlights Busy Calendar
Apr-15 09:25
- Risk sentiment is relatively stable on Wednesday amid the cautious optimism surrounding the resumption of talks between the US and Iran. AUD has modestly outperformed and hovers just below 0.7150, with markets remaining focused on the year’s peak at 0.7187. Conversely, EURUSD topside momentum has stalled above the 1.18 mark, with most recent ECB commentary pushing back a little on the case for an April hike.
- These dynamics have prompted EURAUD to fall to a three-week low below 1.65 this morning, with the cross remaining 6.25% lower on the year. Over the next 24 hours, we have plenty of event risk that could stoke volatility for EURAUD, highlighted by Australia Mar employment data. Elsewhere, Australia MI inflation expectations, China activity, EZ final inflation data and ECB minutes are all scheduled.
- A number of important EURAUD supports gave way in January, keeping medium-term bearish conditions in place, and 1.60 remains a notable target for the cross having been extremely well supported in this area across the second half of 2024.
- While JP Morgan recently took profit on long AUD vs SEK, GBP basket, they also rotated into short EURAUD cash after the ceasefire announcement to move into a similar but less beta neutral expression.
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May-15 05:59
