Broader risk appeal has long ends back on defensive path
By Andrew Wilkinson
10 December 2009 @ 02:37 pm EDT
There is no major driving force behind interest rate markets today other than a slightly more positive tone towards risk. The S&P 500 index after a dull down session closed on a high and, despite overnight yen-related losses for Asian markets, looks set for a positive session today. If equity investors challenge the November peaks it would be reasonable to expect a commensurate dump for presently low yields implied by short interest rate futures. Stronger commodity related dollars are firmer also implying a reversal in risk appetite following the Australian jobs report and an extension of Chinese measures to spur consumption.