Daily market wrap - Dec. 21 - Westpac

Imre Speizer, Head of NZ Strategy at Westpac, shares a summary of today's market action.

Global market sentiment: Equities and bond yields rose overnight amid year-end rebalancing and mixed US data. The US dollar remained subdued.

Interest rates: US 10yr treasury yields remained elevated between 2.48% and 2.50% (the latter a nine-month high), while 2yr yields initially rose slightly further to 1.87% (a nine-year high). Fed fund futures yields fell slightly, pricing the chance of another rate hike in March at 52%.

Currencies: The US dollar index is unchanged on the day. EUR ranged between 1.1850 and 1.1890. USD/JPY preserved its modest gains post-BoJ (which reaffirmed its accommodative stance). AUD rose from 0.7655 to 0.7707 (a two-month high). NZD preserved its post-GDP gains to 0.7020. AUD/NZD rose from 1.0940 to 1.0980.