Monday 24th January 2022
Curiously bond yields retreated at the end of last week even though the assumption remains that the Fed will signal a March hike. NAB’s Tapas Strickland says the fall in yields is a response to the sharp sell-off in equities at the end of the week which is, itself, a response to the rising interest rate environment. Locally, the CPI numbers for Australia tomorrow will put the RBA’s timeline for rate rises into sharp focus. Global PMIs today might have less influence given they are influenced by transitory factors, such as lockdowns, and the focus on the Fed.