US 10-year Treasuries traded as low as 2.75% but are currently near their high for the day at 2.79%.
There has been a slight steepening of the curve.
The Fed’s Bullard said that an escalating US-China trade dispute increases uncertainty around the outlook, but he would wait and see how negotiations play out before adjusting his economic forecasts, and the end result may be a better trade relationship for US businesses. On rates he said ”more uncertainty is likely keeping longer rates lower. I could see that feeding back and keeping short rates lower than they would otherwise be”.
NZ rates were higher across the curve yesterday in the order of 2-4bps , driven by global forces. There are a few bits and piece on the economic calendar today and tonight but trading is likely to remain lacklustre ahead of the US employment report on Friday night.
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