Curve gyrations lead to little follow.........>

FOREX: Curve gyrations lead to little follow through in currencies

-It's been another relatively muted open for currency markets, although the same

can't be said for bonds, with the longer-end of the US curve under considerable

pressure. US 30yr yields traded higher by as much as 9bps, triggering circuit

breakers in Treasury ultra bonds. The move had no specific catalyst, prompting

markets to eye better-than-expected Chinese manufacturing PMIs, a glut of

long-end JGB supply this week as well as the full return of US participants

after Thursday/Friday Thanksgiving holidays.

-Antipodean currencies outperform, with NZD on top as NZD/USD meets the early

November highs of $0.6466. Commodities are bouncing slightly after acute

volatility Friday - helping WTI crude claw back around 2.5%. Metals remain under

pressure though, which could be holding back the recovery in AUD.

-More PMI data is due from the Canadian and US manufacturing sectors Monday. ISM

Manufacturing is also due after last week's lower-than-expected MNI Chicago PMI

number. New ECB President Lagarde also testifies in front of European

Parliament.