Market wrap: USD and US yeilds fresh multi year highs - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: US interest rates and the US dollar made fresh multi-year highs following some strong economic data. Commodities (ex-precious metals) also rose.

Interest rates: US 10yr treasury yields rose from 2.32% to 2.42% - the highest level since July 2015. The 2yr yield also extended its multi-month rise from 1.08% to 1.15% - the highest since April 2010. Fed funds futures continued to imply a 100% chance of a rate hike in December. US durable goods orders and consumer confidence data delivered positive surprises, and the ECB took steps to help borrowers in the bund repo market.

Currencies:  The US dollar index is up around 0.5% to a fresh 14-year high, following the rise in US interest rates. EUR  fell from 1.0640 to 1.0526, close to the Dec 2015 low. USD/JPY rose from 111.00 to 112.97, the yen underperforming. AUD fell from 0.7445 to 0.7373, the stronger USD at play. NZD similarly fell from 0.7080 to 6996. AUD/NZD rose from 1.0500 to 1.0562."