Daily Commentary BY THE CURVE TEAM –

US Holiday Drives Quiet Start to the Week

20th of February, 2018

Presidents Day in the US meant it was a quiet start to a big week with US markets closed for the holiday. There were some market moves but nothing significant worth noting with things set to kick off tonight with a huge amount of debt on offer from the US Treasury.

It was a very quiet start to the week with individual markets left to their own devices as US markets sat out the session. The AUD gyrated around in a tight range while Australian equities look set to give up yesterday’s unexpected gains after futures drifted back overnight.

This week’s long list of data and events kick off this morning with the minutes from the RBA’s February meeting. While I don’t expect anything that we don’t already know to be discussed, the market will no doubt be pouring over the details for any signs of a change in the outlook.

Following on, there will be some interesting data to come out of Germany in the form of the latest business survey and PPI for last month, the focus will then shift to the US. The US Treasury is set to auction over $150bln of short term debt and $28bln of 2 year notes. With the bond market heavily watched at the moment, the outcome of the debt auctions will be closely scrutinised.

David Flanagan

Director - Interest Rate Markets