Markets Overview

  • ASX SPI 200 futures up 0.2% to 7,419.00
  • Dow Average up 0.7% to 35,728.27
  • Aussie up 0.4% to 0.7544 per US$
  • U.S. 10-year yield rose 2.6bps to 1.5677%
  • Australia 3-year bond yield rose 19bps to 1.12%
  • Australia 10-year bond yield rose 3bps to 1.84%
  • Gold spot little changed at $1,798.27
  • Brent futures little changed at $84.56/bbl

Economic Events

  • 11am: (AU) Australia to Sell A$1 Billion 1.75% 2032 Bonds
  • 11:30am: (AU) Sept. Private Sector Credit MoM, est. 0.5%, prior 0.6%
  • 11:30am: (AU) Sept. Private Sector Credit YoY, est. 5.0%, prior 4.7%
  • 11:30am: (AU) 3Q Retail Sales Ex Inflation QoQ, est. -5.1%, prior 0.8%
  • 11:30am: (AU) 3Q PPI QoQ, prior 0.7%
  • 11:30am: (AU) 3Q PPI YoY, prior 2.2%
  • 11:30am: (AU) Sept. Retail Sales MoM, est. 0.4%

The Treasury yield curve inverted between 20 and 30 years on Thursday for the first time since the U.S. government reintroduced a two-decade maturity in 2020. Two-year rates fell below 0.5% after a torrid two day incrase.
Earlier, a report showed that the U.S. economy expanded at an annual rate of 2% in the three months through September, lower than the 2.6% median estimate in a Bloomberg survey, as consumer spending slowed. The GDP price index also slowed from the last quarter, though it still rose more than analysts’ expectations. A separate report showed that weekly jobless claims fell to a pandemic low.
When 20-year Treasury issuance began in May 2020, yields in the sector were about 25 basis points lower than 30-year yields. While expectations for Federal Reserve rate increases beginning next year have flattened the curve generally, demand for the 20-year point appears to be more muted than for longer-tenor securities.

Other News

Hungry for financial flexibility, a California man named Dylan shelled out a measly $150 a year to eat every meal at Six Flags Magic Mountain in order to save thousands, pay off his student loan debt, get married and purchase a house in Los Angeles.

“You can pay around $150 for unlimited, year-round access to Six Flags, which includes parking and two meals a day,” Dylan, 33, explained to Mel Magazine Monday. “If you time it right, you could eat both lunch and dinner there every day.”

The theme park offers guests a “premium season dining pass” which allows visitors to enjoy lunch and dinner items, as well as a snack and unlimited drinks during every visit on any regular operating day, per Six Flags Magic Mountain’s website. The deal, which doesn’t include alcoholic beverages, is listed on the site at $109.99 plus tax.“One of my co-workers said she spent $1,500 a month on eating out. I was like, ‘Yeah, I’m not going down that road!,’ ” said Dylan, who works as an electrical engineer. He’s eaten an estimated 2,000 meals at around 50 cents per sitting at Six Flags for the past seven years.

Since meeting his wife six years ago, Dylan — who’s as much of a rollercoaster fanatic as he his a thrifty eater — has scaled back on his Six Flags feasting, dialing it down to a mere three or four lunches at the theme park per week.
“My wife moved in and I stopped doing dinners and weekends, too, since she’s not as big into roller coasters as I am,” Dylan said. But he’s not ready to fully kick his low-budget banqueting habit just yet.