US stocks moved higher overnight but, otherwise, market moves were reasonably subdued as we wait the release of the FOMC minutes soon.
After opening weaker, the S&P 500 has recovered to be up around 0.6% today. The NASDAQ is up 0.7% and is sitting near 3 week highs while the VIX back below 20 as volatility has started to subside. The S&P 500 is still around 5% below its highs reached earlier this year.
US yields are broadly stable ahead of the much anticipated release of the minutes to the Fed’s January meeting. The Fed changed the wording in its January statement by referring to further gradual increases in the Fed Funds rate.
The market will look for clarification from the minutes on whether this change in wording signals any change to its tightening plans. New York Fed President Dudley’s comments tonight will also be closely watched.
NZ swap rates fell modestly yesterday, in sympathy with the moves in Australian bond yields.
The NZDMO tenders $150m of the 2033 maturity NZGB today.
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