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· The US extended its move higher and closed within 2% of all-time highs.
· Volatility continued to tick lower.
· Lack of economic data although note the pick-up in May in small-business confidence.
· Focus on the $58bln 3yr auction that went ok and caused little movement in yields.
· Volumes solid. Breadth decent. Value vs Momentum.
· Energy, Healthcare and Comm Services outperforming, while Industrials, Financials and Utilities lagged.
· Semis rally continued.
· AsiaPac is better bid as trade tensions ease with US and China agreeing on a framework – basically what they agreed to in Geneva.
· No major movements in the greenback – ZAR c17.70.
· The yen pared losses after the finance ministry said it’s unrealistic for the government to buy back JGBs in July.
· Treasuries steadied ahead of the inflation reading later: US2y 4.01/US10y 4.47.
· Aussie curve bear flattens and JGB futures remain higher.
· Commodities are better bid, with PGMs rebounding and gold following suit.
· Oil is marginally lower and copper steady.
· The rand is stronger this morning, at R17.69/$, after closing unchanged yesterday (R17.70/$*).
Key events and data:
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· 13h00: US MBA mortgage applications (6 June)
· 14h30: US average hourly earnings (May), CPI (May)
· 20h00: US Federal budget balance (May)
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