 Major global treasury yield tumbled sharply last week on expectations of policy easing by central banks. In particular, ECB Governing Council member Olli Rehn issued panic call for further monetary stimulus "now". German 10-year bund yield hit as low as -0.407, below ECB's -0.40% deposit rate. UK 10-year gilt yield also dropped to as low as 0.655, before closing at 0.739, below BoE's benchmark rate of 0.75%. US 10-year yield also dropped to as low as 1.943. However, stronger than expected US job data prompted rethink in, at least, Fed's policy path. Treasury yields also staged strong rebound to close the week. In the currency markets, Canadian Dollar ended as the strongest one, followed by Dollar., and then Yen. Swiss Franc was the weakest one as geopolitical tensions seemed to have eased. New Zealand Dollar was the second weakest, then Sterling. |
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