The 10-Year Australian government bond yield fell to 1.98% in early trading this morning (from 2.00% at Friday close). This was a function of a global bond market rallying last week following numerous central bank meetings with the US 10-Year rate falling 0.10% to 1.61% on Friday. Firstly, the BoJ announced a change to its policy framework by introducing "yield [...]
Last week, the equity markets rallied following a number of central bank meetings by the Bank of Japan (BoJ), the US Federal Reserve (FED) and the Reserve Bank of New Zealand (RBNZ) who all effectively reiterated lower interest rates for now. As a result, the ASX200 Accumulation Index ended the week up 2.54%. Bond markets also rallied with the Ausbond [...]
The 10-Year Australian government bond yield rose to ~2.16% early trading this morning (from ~2.09% at Friday’s close), the highest level since Brexit in July. As a result the Australian yield curve continues to steepen as yields for shorter dated bonds rise less than longer dated bonds. US yields rose on Friday night following stronger than expected US CPI data, [...]
In a quiet news week investors focused on the outcomes of this weeks central banks meetings. The US Federal Reserve’s (Fed) September meeting commences on Wednesday (Australian time) with the futures market implying an 88% expectation for the Fed to remain on hold (at 0.25-0.50%). Similarly, out of 50 surveyed economists only 15% expect a September hike, with the number [...]
Bank hybrids have been issued in the Australian financial landscape for over 20 years in various forms. While drivers of performance have varied over this period, they are typically cyclical and have a recurring impact on security trading margins (albeit at different magnitudes). The focus of the article will be on what is technically known as an Additional Tier 1 [...]
Last month, the Reserve Bank of Australia (RBA) cut the official cash rate by 0.25% to 1.50% with many Australian banks deciding not to pass on the full rate cut to mortgage holders and instead partially maintaining (and in some cases improving) some term deposit rates. In response to media criticism the banks cited regulatory reasons for these actions but [...]
Over the past week Australian government bonds have sold off which was led by overseas markets. In this article we analyse the events that have led to this and the wider implications at play for Australian bond market returns over the next 12 months. While markets have been waiting since mid-2014 for the US Federal Reserve to increase interest rates, [...]
The RBA cash rate remained unchanged in last Tuesday’s August board meeting at 1.50% but as expected. As a result, markets were broadly stable and it is likely a rate hike by the Fed will be needed to the depreciate the resilient Australian dollar rather than further rate cuts by the RBA. In more interesting news, the 10-Year Australian [...]
Last week, the domestic equity market continued to retrace recent gains as the probability of a September rate hike by the US Federal Reserve increased due to the Boston Fed President Rosengren (a FOMC voter) warning of an overheating US economy (from interest rates being too low). As a result, the ASX200 Accumulation Index is down 1.73% from the start [...]
Domestic markets are pricing in almost no chance of a cut to the cash rate tomorrow as the RBA have re-entered the “wait and see” game with the US. With August’s rate cut having almost no impact on the Australian dollar (and rather fuelling property prices), the RBA are now much more cautious of deploying conventional monetary policy and it [...]
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ABN 31 164 148 467 ‧ Important Information
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