Have Bonds Moved Too Fast, Too Far?
While bonds yields have risen on higher inflationary expectations, driven by higher commodity prices and expectations surrounding large US fiscal stimulus, the big unknown is what will happen next?
Read MoreInterest Rates
Where Are We in the Investment Cycle?
Shares have had a very strong rebound since March last year so where are we in the investment cycle? In his weekly Insights article, AMP Capital’s Shane Oliver gives his thoughts on the subject.
Read MoreBond Markets Grappling with Reflation Risks
A reflation ‘dance’ between bond markets and central banks will likely continue through the rest of 2021, as the scope and sustainability of the recovery unfolds, according to First Sentier Investors.
Read MoreRBA to Maintain Current Rate Environment
RBA Governor Philip Lowe has again made clear the central bank will not be changing rates or its current monetary stance, despite the obvious improvement in the economy in recent months.
Read MoreRBA to Sit on Hands for Foreseeable Future
The RBA board has again made it clear that it will not be moving interest rates before 2024 at the earliest, despite speculation about the effects of rising house prices and inflation.
Read MoreRBA Props up Bond Market for Third Straight Session
For the third session in a row the Reserve Bank has bought up billions of dollars of government bonds, choking off a surge in interest rates and sending yields tumbling.
Read MoreEconomics Wrap: The RBA as Therapist
With bond and currency markets febrile and the stockmarket starting to look a bit untidy, investors will be hoping for some calming words and data from the Reserve Bank.
Read MoreBuffett Week: Bond(s), Warren Bond(s)
Fixed interest investors around the world have been given the gospel from St Warren of Omaha – what they are doing these days isn’t very smart.
Read MoreBuffett Week: So sayeth the Oracle
A lot of followers of Warren Buffett will be a touch disappointed his annual letter to shareholders wasn’t as expansive as usual.
Read MoreThe Bond Crash of 2021? Seven Things for Investors to Consider
AMP Capital’s Shane Oliver’s weekly Insights column takes us on a most timely deep dive into the current state of the global bond market
Read MoreMarket Trends: February 2021
David Bassanese from BetaShares runs through his thoughts on how the various markets look likely to play out this month.
Read MoreFinding that Needle of Income in the Haystack of Low Rates
Phil Strano, Portfolio Manager of the Yarra Absolute Credit Fund, believes Australian credit offers an array of interesting income opportunities.
Read MoreLow(e) Rates to Persist, Says RBA Governor
RBA Governor Philip Lowe sees the current record low level of interest rates of 0.10% and other support remaining in place until 2024 at least and possibly 2025.
Read MoreAdditional $100bn in QE the Only Surprise from the RBA
The RBA kept official interest rates and the key bank lending support measure unchanged at its first meeting of the year, but surprised with news that it will boost its quantitative easing by another $100 billion in April.
Read MoreSeven Key Charts for Investors to Watch
AMP Capital’s Dr Shane Oliver breaks down markets across the spectrum and around the globe in his weekly Insights column.
Read MoreBenign Oz CPI Looks Set to Keep RBA Idle
No concerns about rising inflation from the December Consumer Price Index data released yesterday, with the headline CPI rising 0.9% in the December 2020 quarter and by the same amount for the 2020 calendar year.
Read MoreAsian Shares Fall on Monetary Moves, Regulatory Rumblings
Share markets across Asia were lower after comments and a out of character move by China’s central bank in money markets sparked concerns of a tightening in policy and a more stringent approach to risks in the financial system.
Read MoreCommodities / Currencies / Economics / Fixed Interest / Funds / Interest Rates / Markets / Shane Oliver
US Political Protests, Inflation and Rising Bond Yields
AMP Capital’s Dr Shane Oliver breaks down markets across the spectrum and around the globe in his weekly Insights column.
Read MoreMoody’s Reacts Positively to Biden Package
Credit rating group, Moody’s has given an upbeat and thumbs up approval for the Biden package. Moody’s chief economist, Mark Zandi reckoned it will boost US growth this year to 5% or better, and the same in 2022.
Read More2021 – A List of Lists Regarding the Macro Investment Outlook
2020 turned out far better for diversified investors than had been feared when the pandemic hit, with average balanced growth superannuation funds looking like they have returned around 3%. This followed around 15% last year. But can returns hold up?
Read MoreABS Adjusts CPI To Reflect Grounded Travel Industry
COVID-19 will mean the December quarter Consumer Price Index to be released on the last Wednesday in January, will have a different look to the one released in late October for the September quarter.
Read MoreFed Upgrades Outlook But Promises Continued Support Until “Substantial Progress” On Recovery
The US Federal Reserve’s post-meeting statement looked bullish at first glance, and yet the market reaction was muted.
Read MoreTreasury Issues Notes At Negative Yield For The First Time
No, Australian interest rates are not going to follow yields in some markets offshore (Japan and Germany for example) into negative territory despite part of a $1.5 billion short term Treasury note issue being sold for the first time at a negative yield.
Read MoreRBA Holds Rates, Returns To Watch & Wait Mode
As expected the Reserve Bank left monetary policy unchanged with the cash rate unchanged at 0.10% and no sign of any desire to make an adjustment any time soon.
Read MoreRBNZ Delivers Further Easing In Monetary Policy
The Reserve Bank of NZ is persisting with its very expansive monetary policy settings and joining the Reserve Bank of Australia in lending money to banks to on-lend to customers.
Read MoreRBA Lifts Forecasts But Warns On “Bumpy” Recovery
While the Reserve Bank has revised upwards its forecasts for the Australian economy, predicting it will now contract by a still substantial 4% in the year to the December,’ the outlook remains weak-looking into 2021.
Read MoreFed Reaffirms Low Rates Amid Election Uncertainty
As expected the US Fed kept its very easy monetary policy intact on Thursday and again said it would do whatever it can in the coming months to sustain a US economic recovery that is again being threatened by a spreading coronavirus pandemic.
Read MoreRBA: Economy Better But Still Weak And Needs Help
The Reserve bank moved to further ease monetary policy even though there are clear signs the economy is doing much better than thought in August. But jobs growth and wages remain weak, household consumption is being supported by the likes of Jobkeeper and tax cuts, wage rises are remote and being cut.
Read MoreRBA Ramps Up QE, Cuts Rates To 0.1%
As expected, the prospect of weak inflation, high unemployment, and tepid economic growth for the next few years has forced the Reserve Bank into a set of historic moves at Tuesday’s Melbourne Cup day monetary policy meeting.
Read MoreWhy A Rate Cut Is Looming
Absolutely nothing in the September quarter consumer price index for markets, although the core or underlying inflation rate remains too low for comfort for the Reserve Bank and increases the chances of a rate cut next Tuesday and other easing measures.
Read MoreInflation Spike Unlikely To Worry The RBA
Gold bugs snore on or why today’s September quarter inflation figures won’t matter (except as a part of economic history and statistical record-keeping).
Read MoreRisks Ahead But Standard & Poor’s Reaffirms AAA Rating
Ratings group, Standard & Poor’s has reaffirmed its AAA rating for Australia and maintained its negative outlook.
Read MoreRBA Flags Major Change In Monetary Policy
Another major shift in monetary policy from the RBA which will change the timing of interest rate movements in years to come as the bank turns its back on old, established ways of reacting to events in the economy that are perceived to be inflationary, such as a big wage rise or a surge in oil prices.
Read MoreSuper Low Interest Rates Come With Side Effects
Ultra-loose monetary policy could even be counterproductive for economies.
Read MoreWhy retirees urgently need an alternative to cash
With cash rates set to stay even lower for even longer, retirees urgently need higher-earning alternatives for the defensive portion of their portfolios. Actively managed fixed income investments can provide the answer – and the time to act is now.
Read MoreRBA Holds But Hints At November Rate Cut
No rate cut from the Reserve Bank yesterday – thwarting a growing list of economists, analysts, and others who thought there would be one. In fact, two out of three economists in various polls thought there would be a rate cut on the eve of the 2020-21 budget.
Read MoreCould The RBA Provide A Pre-Budget Boost?
A defining week for Australia this week with all attention on the Federal budget which for once, will overshadow the monthly Reserve Bank monetary policy meeting earlier in the day. Could the Reserve Bank announce a new series of measures to go with the budget spending?
Read MoreKeating’s RBA Criticisms Miss The Mark
It’s clear Paul Keating has failed to understand what the Reserve Bank has done to support the economy – not the federal government and its budget, as he wrongfully claimed it should be doing – but the economy as a whole – business, consumers, farmers, elderly, young – everyone.
Read MoreRBNZ Edges Closer To Negative Rates
The Reserve Bank of NZ continues towards the announcement of a negative interest rate regime later this year. The bank said in its post-meeting monetary policy statement on Wednesday that it had made progress on what it calls a Funding for Lending program with the country’s banks that will be a part of the negative rates regime.
Read MoreRates Lower For Longer After RBA Warns On “Gradual” Recovery
RBA Governor, Guy Debelle made it clear interest rates will remain at current ultra-low levels for the next three years and possibly more. In an online speech he said further rate cuts could happen as the economy struggles to break free of the impact of the pandemic and sluggish demand.
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