Markets risk-on, US bond yields rose, S&P500 +0.3% to a fresh record high - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US bond yields rose, in part, due to affirmation by the US Treasury Secretary that some tax reform will be achieved this year, and in part due to an improvement in risk sentiment.

The S&P500 is up 0.3% to a fresh record high.

Interest rates: US 10yr yields rose from 2.13% to 2.18%, 2yr yields from 1.32% to 1.34%. Fed fund futures yields continued to price the chance of a December rate hike at 41%.

Currencies: The US dollar index is unchanged on the day. EUR made a round trip from 1.1975 to 1.1926 and back. USD/JPY rose from 109.50 to 110.24. AUD consolidated in a 0.8014-0.8049 range. NZD gained about a cent after a poll showed National in the lead (in contrast to the previous poll) and the consolidated in a 0.7280-0.7320 range. AUD/NZD fell from 1.1100 to 1.0980 after the NZ poll and then consolidated around 1.1000."