Commentary courtesy of Spectrum Asset Management’s Lindsay Skardoon.
| Close | Prev Close |
Change | |
| Aust. 90 day bank bill% | 1.77 | 1.76 | 0.01 |
| Aust. 3 year bond%* | 2.16 | 2.13 | 0.03 |
| Aust. 10 year bond%* | 2.91 | 2.86 | 0.05 |
| Aust. 20 year bond%* | 3.33 | 3.28 | 0.05 |
| U.S. 2 year bond% | 2.07 | 2.06 | 0.01 |
| U.S. 10 year bond% | 2.86 | 2.86 | 0.00 |
| U.S. 30 year bond% | 3.14 | 3.16 | -0.02 |
| * Implied yields from Mar 2018 futures | |||
LOCAL MARKETS
Selling of bonds should continue on the day. Bonds should drift weaker over the course of the day.
U.S. BOND MARKETS
U.S. bond yields are likely to be pushed higher as yields in the UK and Europe edge higher. The UK is likely to raise rates in March. The target is expected to be around 2% over the next two years however many economists believe the UK won’t be able to raise rates to that level. As European growth stirs bond yields there are also rising.
