Analysts at ANZ explained that US data has fallen from grace, with surprise indices (which go up when data surprises to the upside and vice versa) collapsing over the past two weeks. Such episodes typically aren’t sustained (people tend to re- calibrate expectations).
"Now that we have “rationalised” the correction lower in US bond yields, the next move should be higher given the overall positive tone of US data."
"That’s still our strategic bias, but we are mindful that we will have to see a technical break back above the ~2.30% level that added fuel to this recent move before the economics will come back into focus. It could be a while away.'
"Commodities were broadly higher as “risk-on” returned amid more positivity towards Trump’s tax reform plan and infrastructure spending program."
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