Market Wrap: Yellen surprisingly upbeat after nonfarm payrolls bombshell - Westpac

Analysts at Westpac offered a market wrap with Yellen surprisingly upbeat.

"Sorry Yellen, what did you just say?"

Key Quotes:

"Global market sentiment: Stocks advanced Monday (S&P500: +0.6%), firmer oil prices boosting the energy sector and reduced odds a near term Fed hike after last Friday’s weak jobs report continuing to reverberate. Chair Yellen was surprisingly upbeat and reiterated that further rate increases can be expected but markets took it in their stride. WTI rose $1.12/bbl to $49.74/bbl.

Interest rates: Fixed income markets retraced some of Friday’s sharp gains, the US 10yr note yield rose 2.6bp to 1.72% while the 2yr yield rose 1.6bp to 0.9290%, against the background of firmer oil prices, higher US stocks and Chair Yellen’s message that gradual rate increases are likely.

Currencies: The USD continued to trade with a weak tone, last week’s soft US May payrolls still a major talking point. AUD recouped earlier Asian session losses rising around US1/2 cent from 0.7370 to 0.7370/80. NZD ambled between 0.6900 and 0.6950 offshore. AUD/NZD saw a good bounce, rising from 1.0560 to 1.0640 overnight after briefly touching seven-month lows late last week. GBP underperformed after two polls put the “leave” camp ahead of the “remain” camp."