Market wrap: dollar keeps rising, US bonds dropping - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The post-US election rise in US bond yields accelerated, taking the US dollar higher. Markets remain in the grip of expectations President-elect Trump will boost spending and fund it by issuing debt.

Interest rates: US 10yr treasury yield surged from 2.15% (pre-Veteran’s Day close) to 2.30% - a one-year high. The 2yr jumped from 0.92% to 1.01% - an 11-month high. Fed funds futures also jumped, now implying a 92% chance of a rate hike in December. German 10yr government bond yields also rose, from 0.31% to 0.40% - an 11-month high.

Currencies:  The US dollar index surged to a one-year high. EUR fell from 1.0800 to 1.0709 – a one-year low. USD/JPY rose from 107.50 to 108.54. AUD eked a narrow sideways range of 0.7525-0.7565. NZD similarly ranged between 0.7072 and 0.7105. AUD/NZD ranged between 1.0620 and 1.0660."