Market wrap: DXY weakened; Tuesday's bond market selloff partly retraced - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Tuesday’s bond market selloff was partly retraced, helping the US dollar weaken slightly. US equities are little changed, oil is down almost 3%.

Interest rates: US 10yr treasury yields fell from 1.74% to 1.68% but remain at the upper end of the three-month range. 2yr yields fell from 0.80% to 0.75%, fully retracing Tuesday’s rise. Market pricing of the Fed funds rate fell, implying around a 20% chance of a rate hike in September, a 65% chance by December, and 100% by June 2017.

Currencies:  The US dollar index is around 0.3% lower. EUR rose from 1.1220 to 1.1274. USD/JPY fell from 103.36 to 102.25. AUD consolidated recent losses, trading in a sideways range of 0.7450-0.7496. NZD rose from 0.7260 to 0.7313. AUD/NZD fell from 1.0300 to 1.0238 – a 16-month low."