Market overview: volatility persists, long end bonds rally - ANZ

Analysts at ANZ noted that the markets remain volatile with long end bonds rallying.

Key Quotes:

"EM currencies retracing losses, oil up, USD mixed, and equities generally pushing higher. Weaker UK CPI hit the GBP, while strong US data today put a floor on yield declines. That said, long end yields globally are moving lower.

The most significant moves have been in Europe with Italy 30y: -14bps; Spain 30y: -8bps; France 30y: -9bps and UK 30y: -4bps. In the US the curve is flattening with 2y yields up about 0.5bps and the long end down 5bps.

Fed pricing is now at 96% for December. Within the G10, CAD is outperforming, helped by a circa 4% move higher in oil. NOK is also up. At the time of writing, US equities were largely unchanged, while European bourses closed 0.3-0.6% higher. Gold is up 0.3% to $1,225/oz."