Market wrap: US dollar index is again little changed - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: The US dollar was fairly stable but US interest rates fell amid lower oil prices and US budget wrangling.

Interest rates: US 10yr treasury yields fell from 2.34% to 2.28% - the bottom of the past week’s range – while. 2yr yields fell from 1.29% to 1.25%.Fed fund futures yields slipped, now pricing a June rate hike as a 70% chance.

Weighing on yields were lower oil prices (WTI fell 2.6% to $48), the implications for the Fed of slower growth in Q1, and risks of a US Government shutdown amid disagreement over spending plans.

Currencies: The US dollar index is again little changed, remaining inside a week-old range. EUR bounced off 1.0888 to 1.0930. USD/JPY rose from 111.85 to 12.31 – a six-week high. AUD consolidated recent gains between 0.7510 and 0.7535. Outperformer NZD extended recent gains, from 0.6905 to 0.6941, helped by a solid GDT dairy auction. AUD/NZD slipped from 1.0915 to 1.0850."