By Doug Steel
Long end bond yields generally eased a few bps across Europe overnight. ECBB-inspired low European yields continue to hold back the longer end of the US Treasury curve.
US 10-year Treasury yields are essentially unchanged at around 2.36%.
Meanwhile, short end rates continue to push higher as the market firms up its expectations for Fed hikes. US 2-year Treasury yields rose around 2 bps, seeing further US curve flattening.
Local yields initially pushed higher yesterday with bond yields closing 0.5 to 2.0bps higher across the curve, while swap yields close flat.
Looking to the day ahead, a Yellen (who confirmed yesterday that she will leave the Fed when her successor is sworn in) speech today and the FOMC Minutes are most notable.
Today’s NZ migration data are unlikely to cause any movement.