On the heels of the sharp US Treasury selloff yesterday and with London back open, yields in Europe are heading higher again. In particular, Italy’s 10 yr yield is rising to the highest since Jan ’09, Greece is just shy of a new record high and French yields are just below the highest since April. Also, Australia’s 10 yr yield is rising to the highest since May. Philippines did not raise rates as expected but Taiwan is expected to raise their benchmark rate tomorrow. Indonesia raised the reserve requirement of the FX holdings of its banks. The Shanghai and Hang Seng indices bounced back from their rate hike selloff and that set a positive tone for the rest of the region which then spilled over into Europe. ABC weekly confidence fell 3 pts to -44 from last week’s 6 month high. II: Bulls 55.6 v 58.8 (off highest since Oct ’07), Bears 20 v 20.6.

Category: MacroNotes

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