Market wrap: concerns central banks may become less stimulatory - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Bond yields in most developed markets rose overnight amid growing concerns central banks may become less stimulatory.

Interest rates: US 10yr treasury yields rose from 1.79% to 1.87% and the 2yr yield rose from 0.87% to 0.89% - both at five-month highs. Other countries’ government bond yields also rose: the German 10yr up from 0.08% to 0.19% (five-month high) and the UK 10yr up from 1.12% to 1.29%. There didn’t appear to be any single major news catalyst for the moves, although ECB Nowotny’s comment that it will decide whether to increase asset purchases in December and the stronger-than-expected UK GDP data may have contributed.

Currencies:  The US dollar index is up around 0.3%. EUR initially rose from 1.0900 to 1.0942 but fell 1.0883 in NY. The SEK was the worst performer after Sweden’s central bank remained on hold (as did Norway’s) but with dovish guidance. USD/JPY rose from 104.40 to 105.35 – a three-month high. AUD fell for the second consecutive day, from 0.7635 to 0.7582. NZD fell from 0.7160 to 0.7108. AUD/NZD ranged sideways between 1.0650 and 1.0690."