Policy divergence
• Higher for longer. Markets continue to bolster their US rates outlook. Others are at a different point. The Bank of Canada paused overnight.• US curve inversion. The jump in rate expectations has moved the US yield curve further into negative territory. The curve has a strong record of picking US downturns.• AUD sub $0.66. Deeply negative rate differentials are a AUD headwind, but the high terms of trade is an offsetting factor. Relatively calmer markets overnight. US equities consolidated, while bond yields ticked up further and were once again led by the front-end of the curve. The US 2yr...