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.
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Phase 2 deal unlikely; Trump’s impeachment proceedings; the Fed and the Aussie dollar
A variety of factors have hit the US dollar, shares and bond yields. NAB’s Ray Attrill says the danger of no phase two trade talks with China have caused the most damage.
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Russia turns off gas for Poland and Bulgaria
Russia turns off gas to Poland and Bulgaria. NABs Ray Attrill says markets were already n the doldrums over recession fears. Today’s CPI numbers will be watched closely by the RBA ahead of next week’s meeting.
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No kick from JOLTs
NAB’s David de Garis explains why President Trump needs to reach an agreement with the Democrats this week, Plus the NAB Business Survey and weekly Aussie payrolls data today.
