Markets Overview

  • ASX SPI 200 futures little changed at 7,357.00
  • Dow Average up 0.5% to 33,869.27
  • Aussie down 0.2% to 0.6920 per US$
  • U.S. 10-year yield rose 7.8bps to 3.7320%
  • Australia 3-year bond yield rose 7.8 bps to 3.42%
  • Australia 10-year bond yield rose 3.7 bps to 3.71%
  • Gold spot up 0.2% to $1,865.57
  • Brent futures up 2.2% to $86.39/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$300 Million 1.75% 2051 Bonds

Equity futures in Asia indicated declines for share markets across the region Monday after the worst week for stocks and bonds this year as traders increased interest rate expectations ahead of crucial US inflation data due Tuesday.

Contracts for equity benchmarks in Japan and Hong Kong fell while those for Australia were flat. The S&P 500 ended the week 1.1% lower, while the tech-heavy Nasdaq 100 fell 2.1%, the worst weekly performance this year for the two indexes. Bond markets also fell with the Bloomberg Global Aggregate bond index dropping 1.6%, the worst weekly run since September.

The action was driven by a swift repricing of interest rate expectations as investors reassess the prospect for US borrowing costs to peak this year. Market pricing now implies rates will peak at 5.2% in July, up from less than 5% a month ago.

Australian and New Zealand 10-year yields jumped 10 basis points in early Asian trading following a sell-off in US government bonds that pushed the 10-year Treasury yield 7 basis points higher.

Economists forecast US consumer price index data to be published Tuesday will show inflation slowing to 6.2%, which would be the lowest reading since September 2021. The data will provide much-needed direction for the Federal Open Market Committee to set interest rates.


Other News

A Texas man upset with the way power outages were handled following a storm last week attended a city council meeting Thursday dressed as a clown, claiming he was suited for the job of Austin Energy CEO. More than 348,000 residents were affected by the storm.

During the public statement portion of the meeting, Alex Strenger, an entertainer known for his performances at city council meetings, was called to the podium to address council members.

Wearing a rainbow-colored wig, face paint, a big red nose and a multicolored polka dot tie with a yellow shirt, Strenger said he wanted to speak “in support” of items 39 and 81 because “there needs to be accountability for what happened.”

According to the agenda listed on the city’s website, Item 39 addressed the removal and replacement of members among other related situations, and Item 81 was specifically written to “approve a resolution directing the City Auditor to conduct a comprehensive audit of the Austin Energy Vegetation Plan and Austin Energy’s response to the February 2023 winter storm event.”

Strenger began his allotted time by stating that his mother told him to “dress for the job you want to have,” so he came to the council meeting dressed as a clown because he’d like to nominate himself to be the next CEO of Austin Energy.

In his statement, aimed at making fun of the liberal city’s priorities, Strenger said Austin needs leaders aligned with what’s important to the residents, like “fighting climate change.”

He also said he would need a salary between $350,000 to $500,000 a year to be able to support his lifestyle, fund his cocaine habit, and take care of his wife “who has stage 5 testicular cancer.”

His satirical speech comes a day after Austin Energy announced it had restored power to more than 99% of customers who were without for days following last Wednesday’s winter storm.