Market Commentary: Tuesday 20th May

The Reserve Bank of Australia cut rates as expected, by 25 basis points to 3.85%.

Japanese government notes slumped after a bond auction received the lowest demand since 2012.
20-year bond yields rose 15 basis points to their highest level since 2000, and 30-year yields reached their highest point since their 1999 debut.

India is discussing a US trade deal and expects to reach an interim agreement before July.
Japan's trade negotiator, Akazawa, is arranging a visit to the US for a third round of talks this year.
Vietnam and the US also held a second round of negotiations.

Currencies were relatively unchanged, while gold dropped slightly, bouncing near the $3,200 level.

Crypto markets edged higher:

• Bitcoin rose 0.7% to $106,226.08

• Ether rose 1.7% to $2,564.88

In the day ahead, we have CAD CPI, G7 meetings, and another round of FOMC member speeches.