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28 Mar 2023

No new news is good news

• Positive vibes. No new news on the banking front has supported risk sentiment. Bond yields have moved higher, with oil & base metal prices firmer.• Softer USD. Despite the upswing in US yields the USD has drifted lower. AUD & NZD have been boosted by the more positive risk appetite.• AU data pulse. Retail sales were sluggish. CPI indicator for February due today. A larger pull-back in annual growth could open the door to a RBA pause next week. Mixed fortunes across markets overnight, although there has been a relative sense of calm with no new news regarding the...

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Recovery Continues

With tensions continuing to ease across the global banking sector, high-risk currencies are edging higher and the dollar is retreating from its recent highs. Trading volumes in bond markets are beginning to subside – but with investors reducing bets on a turmoil-induced pivot in central bank policy, rates are moving upward. The US two-year is yielding more than 4 percent once again, and equivalent benchmarks in the euro area, United Kingdom, and Canada are climbing off levels reached last week. The euro continues to march higher, with rising bond yields – supported by still-elevated inflation expectations – helping to push the...

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