US Treasury yields tracked the over-arching political mood, with the 10-year rate reaching a low of 2.16% when sentiment was at its worst, but the strong consumer sentiment data and removal of Bannon saw rates climb to close the session at 2.19%, little changed overall.
NZ swap rates closed Friday down 1-2bps across the curve, with global forces in the driving seat.
It’s a fairly quiet economic calendar for the week ahead. Market attention will be focused on the Jackson Hole symposium towards the end of the week hosted by the Kansas City Fed. Fed Chair Yellen is scheduled to talk about financial stability. Last week the Fed’s Dudley commented that rising asset prices suggested the Fed likely needed to do more to tighten financial conditions. If Yellen echoes these thoughts then that could lead to higher bond yields by the end of the week.
Daily swap rates
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Jason Wong is on the BNZ Research team. All its research is available here.
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