Normally I don’t like to comment on actions by the Australian Government but with the announcement of a cut in expenses in order to obtain a budget surplus I have to. Its widely recognised that the level of Australian Government debt is very low by world standards. If you look at my last post on …
Monthly Archive: November 2011
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Nov 24
Australian Government Bond Yields…seriously low
Source: RBA Just when you think the yield curve can’t get any lower, the last 8 days have taken another 10 to 15bps off. Sharemarkets have obviously dropped on the Euro-debacle and this yield curve demonstrates not only significant interest rate reductions in the months to come but a significantly slowing Australian eonomy thanks to …
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Nov 22
European Bond Yields
Europe is all that really matters to financial markets at the moment so thought I might re-produce this table of bond yields so they’re easy to access…they’re not that easy to find on Bloomberg without a subscription! [table id=1 /] Send article as PDF
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Nov 16
Australian Government Bonds…even lower!
Source: RBA Since August the Australian Government Bond yield curve has dropped massively indicating the lower expectation of interest rates and the deteriorating outlook for our economy. I’ve voiced my increasingly bearish view of the Eurozone situation so I won’t go on any further about so I’ll mention the new addition to my yield curve…the …
Nov 15
Spanish and Italian 10yr Bonds getting worriesome again
Just a quick note to say that Italian 10yr bond yields are heading towards 7% again and Spanish 10yr bond yields are consolidating above 6%. These two sovereigns are waway too big to be saved and I really do believe the European situation is heading towards catastrophe…I don’t see an appropriate solution coming soon. The …
Nov 10
Euro Breakup…very painful indeed
The reasons why the Euro is a failing concept have certainly been well documented and spoken about. Basically, without a fiscal union, monetary policy and a single currency are instruments that are too blunt to aid struggling countries when other countries are experiencing different levels of economic growth and/or inflation across Europe. For example, the German economy, which …
Nov 07
My day at the Portfolio Construction Academy
Last Friday I attended a day long program with around 80 researchers, financial advisers, and other financial professionals as part of a 5 day portfolio construction program run by Graham Rich over a 12 month period. Friday’s program was divided into three parts… Investment Fables Asset Allocation using Scenario Modelling Greece Each part went for …
Nov 03
Australian Government Bond Yields…more rate cuts to come?
Source: RBA In just 3 business days the yield curve has dropped down to where it was at the end of September where markets had experienced eight weeks of gloom and doom. Mind you, a lot happened in the three days to the end of yesterday…including the Greek’s putting significant doubt in the Euro rescue …