Please select your home edition
Edition
YY.com app (top)




Collinson FX Commentary: Feb 13 - Bond vigilantes saddle up

by Collinson FX 13 Feb 2018 05:34 PST 14 February 2018
Bay of Islands Sailing Week, January 2018 © Richard Gladwell

Collinson FX Commentary: Feb 13 - Bond vigilantes saddle up

The Dow surged over 400 points, to open the new weeks trade, despite a further spike in US bond yields. The strong US economic growth was the trigger for a spike in interest rates that caused the tumultuous sell-off over the last week, or so.

A new term to describe interest rates has been floated, 'the bond vigilantes have saddled up', which is brilliantly descriptive.

The recent surge in yields is due mainly to the strength of growth in the economy, although the massive expansion of global debt has lead to extensive supply, allowing rates to rise. The difference in today's trade, is that rates went up and so did equities.

The Dollar remains strong, with the EUR trading 1.2280, while the Yen holds 108.60. The relative strength of the reserve continues to oppress commodity currencies, with the NZD trading below 0.7250, while the AUD holds around 0,7840. A slow day for economic data releases, globally, will build with keen interest in inflation/growth numbers.

For more on Collinson FX the latest update www.collinsonco.com/forex/trading-rooms/nz

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: Feb 20 - Confidence on China/US
The AUD pushed up to 0.7170, while NZD regained 0.6850, after underperformance on domestic market The growing confidence surrounding US/China trade talks has allowed the trade exposed, commodity currencies to post gains. The RBA released minutes from their recent meeting, which warned of ‘significant uncertainties' Posted today at 9:53 am
Collinson FX: Feb 14 - Oz Govt trying to hang on
The NZD spiked to 0.6850, although it eased back to 0.6800 in overnight trade US continues trade negotiations with China and a new trade deal looks imminent. The NZD spiked to 0.6850, although it eased back to 0.6800 in overnight trade, while the AUD regained 0.7100 despite political turmoil. Posted on 13 Feb
Collinson FX: February 4, 2019 - US boom begins
The softer reserve has allowed the commodity currencies to benefit, the NZD holds 0.6900 The strong US/China trade negotiation process has settled the market uncertainty, with the reassuring process. The heavily trade exposed nations remain extremely exposed to this progress. Posted on 3 Feb
Collinson FX: January 17 - Brexit focus remains
AUD slipping below 0.7200, while the NZD drifted below 0.6800 Focus remains on the ‘Brexit' catastrophe and the slow motion train crash, that it is, while global economic data remains scarce. Posted on 17 Jan
Collinson FX: January 9 - Deal by end of 90 days
The AUD trades at 0.7125, while the NZD consolidates above 0.6700 Markets continued to regain confidence as China/US trade negotiations look to progress in China. The US team are looking to iron out the points of disagreement with the Chinese and ensure a Trade pact is signed by the end of the 90 day negotiating period. Posted on 9 Jan
Collinson FX: January 4, 2019 - Nervous markets
AUD trades back above 0.7000, while the NZD pushed up slightly on a weaker reserve. Nervous markets remain volatile and until some certainty returns we can expect abnormal movements. Trade and Central bank policy/speculation will dominate the narrative, while economic data will soften. Posted on 6 Jan
Collinson FX: December 28 - Historic spike in US
AUD testing 0.7000 to the downside, while the NZD slipped below 0.6700 Markets enjoyed a historic spike in the previous days trade. The Dow jumped nearly 1,000 points! This is the largest single days gain in nearly 10 years. Posted on 28 Dec 2018
Collinson FX: Dec 18 - AUS and NZL economies OK
The Australian and NZ economies have performed remarkably well, under testing circumstances The Australian and NZ economies have performed remarkably well, under testing circumstances, but the trade deal remain fundamental. Posted on 17 Dec 2018
Collinson FX: Dec 13 - NZD holds the line at .6850
The AUD moved up to 0.7220, while the NZD drifted to 0.6850, holding the line. Markets rebounded strongly overnight, as confidence over US/China trade talks progress well. The AUD moved up to 0.7220, while the NZD drifted to 0.6850, holding the line. Posted on 14 Dec 2018
Collinson FX: Dec 7 - KIWI holds ground
The NZD held up reasonably well considering, softening to 0.6870, while the AUD fell to 0.7200. The NZD held up reasonably well considering, softening to 0.6870, while the AUD fell to 0.7200. The AUD has been adversely effected by the recent downgraded growth data and the health of the consumer. Posted on 7 Dec 2018
YY.com app (top)