Commentary courtesy of Spectrum Asset Management’s Lindsay Skardoon.
| Close | Prev Close |
Change | |
| Aust. 90 day bank bill% | 1.77 | 1.77 | 0.00 |
| Aust. 3 year bond%* | 2.17 | 2.16 | 0.01 |
| Aust. 10 year bond%* | 2.92 | 2.92 | 0.00 |
| Aust. 20 year bond%* | 3.34 | 3.33 | 0.01 |
| U.S. 2 year bond% | 2.20 | 2.18 | 0.02 |
| U.S. 10 year bond% | 2.87 | 2.91 | -0.04 |
| U.S. 30 year bond% | 3.13 | 3.17 | -0.04 |
| * Implied yields from Mar 2018 futures | |||
LOCAL MARKETS
The Australian markets should be quiet as traders reassess the week’s trading and, with the U.S. market closed, markets elsewhere are also likely to be quiet. As often happens in a quiet market, they drift and small patches of selling lead the day weaker. Expect some selling a little profit taking later in the day.
U.S. BOND MARKETS
Treasuries on Friday ended the week a little better unless you were long 2-year bonds. The curve flattened and the longer maturities showed a “bid” tone. Interestingly, U.S. treasuries, so often the leader, on Friday were the laggard. The European bonds saw a strong bid tone and this carried over into the U.S. bond market.
