Free fall in major treasury yields remain the main focus in the markets today. German 10-year bund yield hit another record low at -0.397 and is now back at -0.378, down -0.013. It closed at -0.324 last week. UK 10-year gilt yield also dropped to as low as 0.67 but it's back at 0.699. It closed at 0.833 last week and with this week's decline, it's below BoE's benchmark interest rate for the first time in a decade. US 10-year yield also dips to as low as 1.955 as regular trading starts, lowest level since late 2016. In the currency markets, Yen remains the strongest broadly for the week. Though, for today, it's overtaken by Australian and New Zealand Dollar. Aussie was firstly supported by RBA Governor Philip Lowe's comments yesterday after the highly anticipated rate cut. Trade surplus hit new record in May on iron ore. And at the same time, iron ore prices hit new six-year high this week, on persistently tight supply and news about an easing of the restrictions on steel production in China. Sterling is currently the weakest one after a string of weak PMIs point to slight contraction in GDP in Q2. Euro is the next weakest, followed by Dollar after ADP jobs missed expectations. Technically, 0.7022/7034 resistance in AUD/USD is an immediate focus. Sustained break will confirm near term bullish reversal. Similarly, firm break of 1.6052 support in EUR/AUD will confirm near term bearish reversal. USD/CAD is back pressing 1.3052/68 cluster support zone. Firm break there will carry medium term bearish implications. In Europe, currently, FTSE is up 0.65%. DAX is up 0.64%. CAC is up 0.64%. German 10-year yield is down -0.013 at -0.378. Earlier in Asia, Nikkei dropped -0.53%. Hong Kong HSI dropped -0.07%. China Shanghai SSE dropped -0.94%. Singapore Strait Times dropped -0.09%. Japan 10-year JGB yield dropped -0.015 to -0.158. |
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