First post in a little while and I’m back with my reader’s (both of them) favourite post…the AUstralian Government Bond Yield Curve (I know this as its the most searched and looked at posts on my blog)…anyway…I digress. .. What an amazing two weeks in bond markets. As the chart shows there was a strong …
Category Archive: Fixed Interest
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Aug 30
Simple Economic Update
The month of July saw the return of strong sharemarkets both in Australia and overseas with the first positive monthly performance for four months. This return of confidence was largely due to investors reacting positively to the European Banking stress tests where 92% of European banks tested passed. Alongside of the good sharemarket performance was …
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Aug 23
Australian Government Bond Yield Curve – August 2010
Source : RBA The above chart shows the Australian Government Bond Yield curve the day after each of the RBA’s interest rate increases this year (i.e. 4 March, 8 April, and 6 May), the end of the financial year and through to last Friday. Since 8 April the yield curve has continued to flatten suggesting …
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Aug 23
Interesting Market Stat from Paul Krugman
The link to his blog is here…anyway…the stat is… One thing you sometimes hear is that the game will be up when the ratings agencies downgrade U.S. debt. I wonder how many of the people saying this know that Moody’s and S&P downgraded Japanese debt in 2002, with Moody’s actually putting it below Botswana and …
Aug 04
RBA Rates stay on hold – may stay that way for a while
The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth likely to be close to trend, inflation close to target and the global outlook remaining somewhat uncertain, the Board judged this setting of monetary policy to be appropriate. This was the final …
Jul 30
Australian Government Bond Yield Curve update
I haven’t looked at the government bond yield curve for a while so here it is. I’m sure you don’t need the chart to know that the economic outlook was looking much better back in March and April, then it has since (i.e. the curve was sloping upwards much steeper back then). With bond yields …
Jul 06
Looks like interest rates might be flat for a while
The latest yield curve of Australian Government Bonds shows interest rates staying around 4.5% for the next 3 years. This is a fairly obvious statement about our economy suggesting that growth is likely to be flat for a few years and inflation too is likely to be relatively unchanged. Of course, this view may will change …