US 10-year Treasury yields were 1-2bps higher over the Asian trading session but fell on the European open and have traded range-bound since. The yield is down to 2.18% down around 2bps from the NZ close.
There’s nothing much to say about the NZ rates market either, with the swap curve up in the order of 1bp and bond yields up 3-4bps.
The quiet trading conditions are expected to continue right through to the end of the week. Traders will be keeping their powder dry for the annual Jackson Hole symposium hosted by the Kansas City Fed which kicks off towards the end of the week. There’s no guarantee much new will come out of it, but anticipation is always high for this event. The ECB’s Draghi and Fed’s Yellen’s speeches will get the most attention.