Sometimes a headline stands out as a catalyst for a market move but on many days it's impossible to point to a driving force. Wednesday was one of those days as the yen rallied in a flight to quality as the kiwi lagged. Markets will have a chance to digest the moves in Asian trading with a light calendar featuring RBA speakers. Our latest Premium trades
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The end/beginning of a quarter is always a tricky time to make sense of markets and that was especially true Wednesday with changeover happening a day ahead of the ECB meeting. Aside from broad yen strength the moves in the FX markets were relatively subdued but it was a full-fledged 'risk off' trade in bonds and stocks.
The debt markets seemed to lead Friday's moves, especially German and US bonds. The US 10-year yield fell more than 10 bps to 2.38% and German bunds fell below 0.90% once again.