7 May 2015
Market Movers: Fixed income under further pressure in the Asian trade – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance and key developments during the Asian trading session.
Key Quotes
“Same story today with fixed income markets coming under further pressure as long positions continue to be unwound in Asia.”
“In Aus today we got employment data and while the headline was mildly softer, there was not much in it. Press speculation that the RBA would reaffirm its easing bias in tomorrow’s SoMP saw the AUD come off the US$0.8030 highs in US trade and made the retest above US$0.80 in Asia a brief affair.”
“However ACGBs came under renewed pressure post the data as CTA accounts took control. The short end continues to outperform on this sell off, Aus 3yrs +3.5bps and 10yrs +7bps. The NZGB long end was up roughly the same magnitude, but the NZ short end is only 1 bps higher in yield.”
“The USD is close to unchanged in Asia, with NOK and AUD +0.15% and the Euro Centric currencies –0.05%.”
“Equity markets are down across the board, taking their cues from moves lower in US indices and Yellen’s comments that stock valuations are pretty high.”
“Commodities are softer, copper –0.65%, brent –0.5%, iron ore –1.8% and gold –0.45%.”
Key Quotes
“Same story today with fixed income markets coming under further pressure as long positions continue to be unwound in Asia.”
“In Aus today we got employment data and while the headline was mildly softer, there was not much in it. Press speculation that the RBA would reaffirm its easing bias in tomorrow’s SoMP saw the AUD come off the US$0.8030 highs in US trade and made the retest above US$0.80 in Asia a brief affair.”
“However ACGBs came under renewed pressure post the data as CTA accounts took control. The short end continues to outperform on this sell off, Aus 3yrs +3.5bps and 10yrs +7bps. The NZGB long end was up roughly the same magnitude, but the NZ short end is only 1 bps higher in yield.”
“The USD is close to unchanged in Asia, with NOK and AUD +0.15% and the Euro Centric currencies –0.05%.”
“Equity markets are down across the board, taking their cues from moves lower in US indices and Yellen’s comments that stock valuations are pretty high.”
“Commodities are softer, copper –0.65%, brent –0.5%, iron ore –1.8% and gold –0.45%.”