By Doug Steel
Global bond yields were mixed overnight, with yields generally a basis point or two lower in Europe but a little higher in the US.
The US 10-year Treasury yield currently sits up about 2.5 bps around 2.31%, gaining some support from the positive data and another push higher in oil prices (despite a higher USD). Brent crude oil prices are up another 1%, to around $US51.50/bbl.
Short end US yields have largely held their post Fed decline, seeing a steeper curve. The US 2-year Treasury yield is flat on the day.
Yesterday, local yields fell across the curve following offshore moves in the previous, Fed influenced, session. NZ 10-year swap yields closed down 4.5 bps at 3.28%, while 2-year swap yields fell 1.5 bps to close just under 2.21%.
Looking ahead, there is a fair bit of offshore data over the next 24 hours although most of it is unlikely to cause a stir.
Most focus will be on Q2 US GDP, with the market anticipating a decent acceleration from a soft Q1.
Inflation guides will come via CPI’s for Japan and German along with US employment costs.