Over the last 10 trading sessions, yields in the benchmark 10-yr and 30-yr US bonds have dropped over 5% to 2.26% and 2.82, respectfully.
The quick reversal in yield expectations has had several “knock-on” effects across various markets.
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The lower US yields will have a dampening effect on US banks, which has been illustrated by the weaker forward guidance from Goldman Sachs and JP Morgan.
More locally, the weaker US yields has triggered a sharp rally in the AUD/USD up to a 2-year high of .7940 in early trade.
We have written about how a back up in US rates would benefit local yield sensitive names like GPT and negatively impact multinationals like CPU.
US 30-yr Yield
