Here's my summary of the key news overnight in 90 seconds at 9 am, including news there are more signs of a pick-up in US economic activity.
An increase in goods entering its Pacific west coat ports is reflecting optimism about US consumer spending and their trucking industry this year.
Bond prices tumbled for a second straight session, as investor optimism fueled another drop in US Treasury prices and a rise in yields.
The ECB reported overnight that bank stress levels have eased in the eurozone, but that things are still very fragile.
It is warning about an impending "negative feedback loop" between distressed sovereigns, diverging economic growth prospects and concerns about the financial soundness of the region's banks.
The EU has confirmed that it will give member countries more breathing space to get their deficits and debts back into line, reaffirming the shift away from austerity policies.
The IMF has lowered its forecasts for China’s growth this year and called for 'decisive' policy changes to their economy; kind of supports what we have been hearing from the Chinese leadership recently though.
Here's a story you haven't heard for decades: Land prices rose in more than half of Japan's major urban areas in the first quarter of 2013, helped by increasing commercial investment in major metro areas and residential demand in Tokyo.
Another story from Japan may interest you, giant beverage brand Suntory is to IPO its non-alcoholic division in a NZ$5.5 bln deal; it's the division that owns the local Frucor business for which it paid nearly NZ$1 bln in 2009.
And New Zealand has slipped again in the World Competitiveness rankings by IMD, a respected Swiss business school. We are now 25th out of the 60 countries measured, down one place from last year and down from 11th in 1997.
The NZ dollar starts today at 81.3 USc, 84.4 AUc as the Aussie sinks again - it is now at its lowest level since October 2011 against the US dollar - and our TWI is back up to 76.7.
The low Aussie dollar may put on hold further RBA rate cuts.
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2 Comments
Bond prices tumbled for a second straight session, as investor optimism fueled another drop in US Treasury prices and a rise in yields.
David, I guess when you write about these instruments rather than owning them a casualness about pricing can creep into the dialogue.
US Treasury Bonds closing prices
This is not to deny that UST10 yields did spike to 223bps overnight - but a good 5 year auction and a sizeable pomo coupled with a weaker stock market served to rescue the situation from potential disaster.
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