ASX 200, Nikkei 225 Edge Lower as Risk Sentiment Remains Mixed
2021-03-02 23:00:00
Izaac Brook,
ASX 200 & Nikkei 225 Talking Points:
Nikkei 225 and ASX 200 Both Headed Slightly Lower in Tuesday’s Session
While Bond Yields Have Stabilized, Sentiment Remains Mixed
Weak US Trading Session Could Have Knock-On Effects in Other Risk Markets
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ASX 200, Nikkei 225 Edge Lower as Risk Sentiment Remains Mixed
As financial markets enter the one-year anniversary of the onset of pandemic-induced volatility, risk sentiment remains mixed. Late February’s longer-term bond market rout set off profit-taking and portfolio rebalancing across financial markets as risk-free rates moved higher.
During this volatility, the RBA doubled its typical QE purchase size in order to maintain its yield target on the 3-year Australian Government bond. The RBA then held its monetary policy unchanged on Tuesday.