UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Australian government bonds slumped on Tuesday tracking board weakness in the U.S. Treasuries as investors remained optimistic about world’s largest economy and Federal Reserve interest rate hikes.
The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, rose 4-1/2 basis points to 2.724 percent, the yield on the long-term 30-year Note also jumped 4-1/2 basis points to 3.201 percent and the yield on short-term 2-year up 1 basis point to 2.075 percent by 03:00 GMT.
Now markets await Wednesday’s Australia Q2 inflation data, which is expected to rise 0.5 percent q/q and 2.2 percent y/y. If this realized, the inflation data will breach the lower bound of the RBA inflation target of 2-3 percent. This will further support the Reserve Bank of Australia (RBA) view of remaining optimistic on interest rate hike. At the same time, a higher-than-expected number will boost the Australian bond yields and the Australian dollar.
The RBA next meeting is scheduled for August 7, where the board members are expected to keep its interest rate unchanged at 1.50 percent. However, if inflation data continues to improve over the coming months, interest rate hike is not far off.
In the United States, Treasuries remained under pressure as investors moved to riskier assets. The U.S. 10-year Treasury yield rose to 2.954 percent – highest since June 14. Markets would now mainly focus on the Q2 GDP growth scheduled to be released on Friday.
“The 10-year UST bonds sold off to push the yield up to 2.96 percent (highest in five weeks) on expectations that the FOMC will push on with a rate hike in September notwithstanding Trump’s criticism,” said OCBC in its Daily Treasury Outlook.
Meanwhile, the S&P/ASX 200 index traded 0.42 percent higher at 6,210.5 by 03:35GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained slightly bearish at -99.50 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
