Asia shares rise on rate cut bets; RBA seen turning hawkish

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SINGAPORE, May 7 — Asian shares made 15-month highs today on renewed confidence of US interest rate cuts, while traders waited on a policy meeting in Australia later in the day...

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Japan’s Nikkei gained 1.3 per cent and S&P 500 futures were steady after the cash index logged a 1 per cent rise overnight. Treasuries, which rallied on Friday’s jobs figures, traded steady in New York overnight and 10-year yields +held at 4.49 per cent in Tokyo yesterday. Interest rates markets price at least one US rate cut this year, in November.Demand will be tested at a US$58 billion three-year note auction yesterday, which is followed by US$42 billion in 10-year sales on Wednesday and US$25 billion of 30-year sales on Thursday.

The Australian dollar was steady at US$0.6637 in morning trade. Swaps market pricing implies a near even chance of a rate hike later this year in Australia.

 

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