Financial markets traded sideways overnight - ANZ

Analysts at ANZ noted that the financial markets traded sideways overnight with equities marginally higher, treasury yields bear flattening, and the USD mixed against the G10.

Key Quotes:

"With a plethora of central bank speakers over the weekend, the market took Monday to digest their views.

Yellen continued to view the slowdown in inflation as temporary and continues to believe in a gradual rate hike path, sending front-end yields a little higher today. US 2 year yields rose 3bps to 1.53% and 10-year yields were up 2bps to 2.29%.

Yields in Europe fell 3 (France, Germany, UK) to 5 (Spain, Italy) bps.

The US survey data (Empire Manufacturing) to kick off the October dataflow had a firm headline, but underlying details were a little softer. European bourses were little changed with Spain’s issues kicked down the road, while in the US equities were up 0.1-0.3%. GBP fell on reports that the Brexit negotiations are heading for a breakdown unless the EU signals compromise.

Oil lifted more than 1% as military moves in Kirkuk raised fears of supply disruption. Copper lifted to a 3-year high and palladium to a 16-year high. Gold has been steady trading just above USD1300/oz."