Market wrap: volatility higher - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: FX and interest rate markets were volatile overnight, despite little news flow. Hawkish BoE comments helped the GBP outperform.

Interest rates: US 10yr treasury yields extended a week-old decline from 2.39% to 2.37% but only after a jump to 2.44%. The 2yr round-tripped from 1.14% to 1.17% and back. Fed fund futures are now pricing a 100% chance the next is in July (last week they were pricing June).

Currencies:  The US dollar index is up 0.3% although it did give up its earlier gains during the NY session. EUR did a round trip from 1.0700 to 1.0656 and back. GBP was the day’s top performer after the BoE’s Forbes said a rate hike may soon be needed, jumping from 1.2350 to 1.2546. USD/JPY rose and fell, from 111.80 to 112.60 and back. AUD initially fell from 0.7680 to 0.7606 but retraced to 0.7646. NZD similarly fell from 0.7376 (a three-month high) to 0.7279 before retracing to 0.7327. The GDT dairy result (+1%) had no market impact. AUD/NZD rose from 1.0380 to 1.0455 following the RBA’s neutral stance yesterday."