Fed Officials Split as Powell Weighs December Interest Rate Cut 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Airline Loyalty Programs Face New Uncertainty as Visa–Mastercard Fee Settlement Evolves 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
The RBNZ has signaled the next cycle – a tightening one – will not start until the end of 2019. That will anchor the short end, although markets will not abandon their expectations for tightening as early as mid-2018 which mean occasional spikes in the 2yr will be likely. A 2yr swap range of 2.10%-2.60% is expected. The long end will continue to follow US yields, which we expect to rise. That means the curve steepening trend should continue.
Elsewhere, we’ve already stated that Dairy prices have continued to rise for the sixth consecutive time, edging up 0.6 pct at the latest Global Dairy Auction. The last time prices fell was on March 7 when they dipped by 6.3 pct. At the previous three GDT auctions, the price index has climbed by over 3 pct each time.
NZDSEK put expired OTM, this was the last of our 2017 FX Outlook trades.
We called the direction of NZDSEK correctly, but that's scant comfort as the 5% decline in the cross since inception in November nevertheless means that the option expired marginally OTM. Although the Riksbank seems to have been won momentarily out yet again, we could foresee mounting momentum in Kiwi dollar. Hence, we advocate longs in an NZD call/SEK put, strike 6.10.
