Key market themes and views - ANZ

Analysts at ANZ offered observations in key themes within the markets currently. 

Key Quotes:

"BOND WATCH: The US bond market continues to embrace the notion the Fed funds rate will move up with 3 year yields up 3bps and the bellwether 10 year up 2bps. A hike is 60% priced by December. While the US economy is hardly setting the world on fire (last night’s “better” ISM figures were still only consistent with 1.5% GDP growth), the chorus is singing more and more that with inflation effectively on target (averaging out the core PCE deflator and core CPI), it’s time to get on with it, despite a host of global fragilities to remain mindful of.

SHORT POINTS, QUICK RETURNS: Unease in Italy following a poll that showed the constitutional referendum (which is key for the incumbent PM Renzi) is too close to call. The Atlanta Fed sees the US economy growing at 2.2% in Q3. We think NZ will be 3% plus, which means the NZD will hold up. Colombian assets were under the pump after voters rejected a rebel peace accord. More broadly, markets appear to be a) not showing much attention to politics, and b) looking ahead to non-farm payrolls and the upcoming earnings season."