From Marc to Market:
Investors are still in the dark over the precise details of the memorandum of understanding between the US and Iran, but they apparently are sufficiently comfortable to take July WTI to a new two-month low, with August Brent at three-month lows. Softer oil prices are helping ease interest rates, and peripheral European benchmark 10-year yields are at three-month lows. The 10-year US Treasury yield has fallen a dozen basis points since Monday, June 8. Most G10 and emerging market currencies are firmer today.
As widely expected, the Bank of Japan hiked its overnight rate to 1% and would stop tapering its bond purchase next April, stabilizing them around JPY2 trillion (~$12.5 bln) month. The market leans toward another hike late this year. The dollar has held above JPY160 so far today. The Reserve Bank of Australia kept its policy rate steady at 4.35%. The market has around a 50% chance of another hike discounted in the fourth quarter. Chile’s central bank meets late today and is expected maintain its 4.5% overnight target rate....
....MUCH MORE
