Market-recap - Westpac

Analysts at Westpac offered a re-cap overnight markets.

Key Quotes:

"Interest rates: US 10yr treasury yields slipped from 1.50% to 1.46%, 2yr yields from 0.68% to 0.66%. Market pricing of the Fed funds rate decreased, implying a 15% chance of a rate hike in September, a 35% chance by December, and 80% by Dec 2017. The 30yr auction, unlike the 3yr and 10yr earlier this week, was strong. Fed centrist Kaplan said the FOMC was sensitive to a high US dollar. The Bank of Canada kept policy on hold at 0.5%, guidance unchanged.

Currencies:  The US dollar index is slightly lower. EUR rose from 1.1042 to 1.1120 but remains inside a multi-week sideways range. USD/JPY was stuck inside 104.00-105.00. AUD consolidated recent gains, ranging between 0.7580 and 0.7640. NZD similarly ranged between 0.7240 and 0.7320. AUD/NZD ranged between 1.0430 and 1.0485."