Markets Overview

  • ASX SPI 200 futures down 0.1% to 7,333.00
  • Dow Average down 0.1% to 34,051.70
  • Aussie up 0.2% to 0.6630 per US$
  • U.S. 10-year yield rose 14.7bps to 3.5700%
  • Australia 3-year bond yield rose 1.3 bps to 3.01%
  • Australia 10-year bond yield rose 1.5 bps to 3.35%
  • Gold spot down 0.4% to $1,982.46
  • Brent futures down 1.2% to $79.38/bbl

Economic Events

  • 14:30: (AU) May RBA Cash Rate Target, est. 3.60%, prior 3.60%
  • 14:30: (AU) May RBA Cash Rate Target, est. 3.60%, prior 3.60%
  • 21:20: (AU) RBA’s Lowe-Speech

Asian equity futures point to a mixed opening as trading resumes in most of the region’s markets following a holiday on Monday. Investors are weighing JPMorgan Chase & Co.’s purchase of First Republic Bank along with expectations the Federal Reserve will hike interest rates once again this week.

Japanese stocks are poised to rise while Hong Kong and Australian shares may open little changed. With US shares steady on Monday, attention turned to the Treasury market, where investment-grade issuance jumped to more than $22 billion in one of the busiest sessions of 2023.

Rising corporate bond offerings in the US usually represent a double-whammy for Treasuries, which tend to fall amid competition from new debt and as underwriters sell government notes to rate-lock the issue for corporate buyers. Another factor weighing on bond prices Monday was the stabilization in sentiment after JPMorgan acquired First Republic.

US Treasuries sold off across the curve Monday, with yields on 30-year bonds climbing the most in 2023 and those on 10-year notes approaching 3.6%. Equities were little changed after notching two straight months of gains as traders waded through a batch of corporate results.

Other News

A hungry student reportedly chowed down on a banana at the Leeum Museum of Art in Seoul.

The only problem? The fruit was part of an art installation called “Comedian” by Italian artist Maurizio Cattelan.

The Seoul National University student ate part of the artwork, a ripe banana taped to a wall, around 1 p.m., Thursday, according to the Korea Herald. Once he was done, he tidied up a bit and duct-taped the remaining banana peel to the wall.

When the museum asked why he ate the banana, the art major said he hadn’t eaten breakfast and was hungry.

The student later told a reporter he thought damaging the work of art could be seen as artwork in itself, the Korea Herald reported. The banana is replaced every two to three days and the museum will not charge the student with any damages.