Market wrap: US rates fall but dollar held a bid - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US interest rates fell but the US dollar rose on Friday night amid doubts about Trump’s border tax plan and French election concerns. US equities remained at or near record highs.

Interest rates: US 10yr treasury yields fell from 2.46% to 2.40% and 2yr yields fell from 1.22% to 1.18%. Fed fund futures implied rates slipped, the April contract now trading at 0.71%, which implies around a 35% chance of a rate hike in March).

Currencies: The US dollar index gained around 0.5%. EUR fell from 1.0675 to 1.0605. USD/JPY fell from 113.50 to 112.63, the safe-haven yen outperforming. AUD fell from 0.7713 and 0.7656. NZD fell from 0.7210 and 0.7180. AUD/NZD again faltered around the 1.0710 level, slipping back to 1.0650.

CFTC positioning data showed US index longs were reduced slightly, while AUD and NZD longs were increased."