Risk Appetite Stays On The Front Foot As US Yields Tick Down

Risk sentiment remains on a positive footing. US equity futures sit close to session highs. Eminis last a little over +0.50% firmer, Nasdaq futures around 0.60% higher. US yields have ticked down, as US Tsy futures (TYM4) track higher, albeit remaining off Wednesday intra-session highs.

• Front end US yields are down 1 to 1.5bps, the 2yr yield last near 4.95%, around 9bps off recent highs. The market likely taking some relief from Fed Chair Powell's remarks that the next move in rates is unlikely to be a hike.
• Regional Asia Pac equities are mixed, with returning Hong Kong markets the main positive (HSI +1.3%). Japan equities are around flat though.
• In the FX space, trends are mixed, focus remains on USD/JPY, which sits near 156.00 in recent dealings. Earlier highs were at 156.28, but we are comfortably above earlier lows near 153.00 (which likely came about from fresh intervention by the authorities). The tick down in US yields is likely helping yen at the margins.
• AUD continues to outperform NZD. AUD/USD last around 0.20% higher to 0.6535, NZD near flat under 0.5930. The AUD/NZD cross is at fresh highs back to June last year around 1.1025.
• Asia FX is mostly stronger against the USD, KRW and IDR up around 0.30-0.40% at this stage, THB and PHP up 0.25%.
• Event risk is light for the remainder of the Asia Pac session.