Market wrap: US dollar and US bond yields consolidated - Westpac

Analysts at Westpac offered their market wrap.

Key Quotes:

"Global market sentiment: US equities nudged to fresh record highs, while the US dollar and US bond yields consolidated.

Interest rates: US 10yr yields pulled back from 2.36% to 2.33%, and 2yr yields pulled back from 1.49% to 1.47%. Fed fund futures yields, in contrast, firmed and now price the chance of a December rate hike at 82%.

Currencies: The US dollar index is up 0.1% on the day, although spent much of the Ldn/NY sessions declining. EUR rose from 1.1700 to 1.1773. USD/JPY ranged between 112.70 and 113.20. AUD initially made a three-month low at 0.7786, but then recovered to 0.7835 as the USD retreated. NZD was the day’s underperformer, falling from 0.7180 to 0.7150, some of the fall due to a disappointing GDT dairy auction result. AUD/NZD rose from 1.0885 to 1.0950.

Economic Wrap

GDT dairy auction saw prices fall 2.4% overall, with whole milk powder down 2.7% - a disappointing result given futures markets had earlier priced a 6% rise.