Market wrap: US rates up, risk-on, stocks higher again, dollar +0.2% - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Global equities rose, with most US indices making fresh record highs (S&P500 +0.4%). Global bond yields also rose, and the USD extended the previous day’s gains. Market chatter was focussed on Japan’s central bank’s reduction in bond purchases and China’s central bank’s apparent loosening of its currency management.

Interest rates: US 10yr treasury yields rose from 2.48% to 2.54% - the highest since March 2017, with German and UK yields rising by a similar magnitude. US short-maturity yields remained steady, 2yr treasury yields ranging between 1.95% and 1.97%. Fed fund futures priced the chance of another rate hike in March at 65%.

Currencies: The US dollar index is up 0.2% on the day. EUR fell from 1.1970 to 1.1916. USD/JPY extended the negative reaction to the BoJ announcement, to 112.37. The stronger USD helped AUD fall from 0.7860 to 0.7808.  NZD slipped from 0.7197 (a three-month high) to 0.7163. AUD/NZD extended recent losses to 1.0889."