There was another dairy auction today, and another fall in overall prices. This time they fell -2.9% in USD terms and -1.6% in NZD terms. That means from the mid-March peak they are down -15%. The main fall today was for the core WMP price, down -4.9% on top of the -6.5% fall at the prior event two weeks ago. Yes, pencils will be out checking whether another cut to the farmgate payout price is required.
US retail sales came in strong for April, up +8.2% above year-ago levels but perhaps just as expected. That caps a fourth good consecutive monthly rise.
US industrial production also came in well above year-ago levels, up +5.8%. Recent gains have been running higher.
US Fed officials were out talking up their policy positions. Chairman Powell said they will not hesitate to keep raising interest rates until inflation falls in a clear and convincing way.
In China, their main bond trading platform for foreign investors has quietly stopped providing data on their transactions, a move that will heighten concerns about transparency in the nation’s US$20 tln debt market after record outflows. The suspicion is that they are now hiding even faster outflows than they have previously reported.
The UST 10yr yield will start today +9 bps higher at 2.97%. The UST 2-10 rate curve is just a little flatter at +27 bps while their 1-5 curve is actually steeper at +87 bps. Their 30 day-10yr curve is much steeper at +239 bps. The Australian ten year bond is now at 3.44% and up +9 bps. The China Govt ten year bond is little-changed at 2.84%. And the New Zealand Govt ten year is up +6 bps at 3.63%.
On Wall Street, the S&P500 is up +1.2% in Tuesday afternoon trade. Yesterday, Hong Kong ended up a huge +3.3% and Shanghai ended up +0.7%. The ASX200 ended its Tuesday session up +0.3% but the NZX50 ended down -0.2%.
The price of gold starts today up +US$2 since this time yesterday at US$1818/oz.
And oil prices are -US$2.50 lower today and now just under US$110/bbl in the US, while the international Brent price is now just over US$110.50/bbl.
The Kiwi dollar will open today firmer against the US dollar, now at 63.6 USc and a +70 bps rise. Against the Australian dollar we are little-changed at 90.6 AUc. Against the euro we have dipped slightly 60.3 euro cents. That all means our TWI-5 starts today at 70.9 which is up +30 bps from this time yesterday.
The bitcoin price has risen back +0.9% from this time yesterday and is now at US$30,028. Volatility over the past 24 hours has been moderate at +/- 2.1%.
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