Notes

A combination of higher brent crude oil prices and stronger than expected US jobs data has the market concerned about inflation once again. Global benchmark 10-year US Treasury bonds have sold off with yields back up over 4%, as were 2-year Treasuries. Australian government 10-year yields were higher at yesterday’s...

Did you know there’s been a record set for annual Australian corporate bond issuance this year? KangaNews recently announced issuance of $21.4 billion, topping strong 2017 and 2021 years. The top three deals, excluding financials, were NBN $1.75 billion, Telstra $1.2 billion and Nestle, which also issued $1.2 billion. It’s...

Does your portfolio align with your interest rate expectations? Yesterday the RBA Board elected to keep the cash rate on hold at 4.35%, in contrast to the US Fed which delivered a super-sized 50 basis point cut last week, so its range is now 4.75 – 5.00%. That is still...

The US Fed looks set to cut rates tonight, but will it be by 25 basis points or 50? I’m more inclined to think they'll be slow. The market seems split 50:50. We have a very good article from Dr Stephen Foerster of the Ivey Business School outlining what happens...

APRA surprised the market this week when they said they would phase out Capital Notes, otherwise known as hybrids, and Additional Tier 1 capital. It’s a very interesting move and while it’s still technically up for discussion, I think it is more likely it will proceed. Without the buffer of...

Gross Domestic Product (GDP) grew 0.2% in the quarter ending 30 June 2024 and just 1% for the 2023-24 year, the lowest since 1991-92, excluding the pandemic. The ABS attributes the weak growth to subdued household demand propped up by 0.3% government spending, the same rate as the previous...

‘No Time To Yield’. That’s Blackrock’s theme for 2024. In other words, what are you waiting for? Hui Sien Koay, says Australians are sitting on too much cash and that when rate cuts come, deposit rates will drop dramatically. Now is the time to switch out of cash and...

According to US Federal Reserve Chair Jerome Powell, the "time has come" for the central bank to reduce the benchmark rate from a 20-year high, noting progress on inflation. The comments that interest rate cuts were on the way were welcomed by the market with government bond yields rallying...

The US Fed looks like it’ll cut interest rates this year while at home the RBA still hasn’t ruled out the possibility of a rate hike. Expert commentary varies widely. Sonal Desai from Franklin Templeton tells us we should be looking beyond whether the FED will cut but more...

This week, we’ve seen a number of new corporate bonds in the domestic market. As of close of business on Tuesday 13 August 2024: BNP Paribas is taking expressions of interest for a 10NC5 (10-year, non-call 5) subordinated kangaroo with a fixed to floating and/or floating with price guidance...