Rising inflationary pressures are seeping into Aussie inflation expectations which according to the Melbourne Institute reached 4.6% in November. Nevertheless, the RBA pushed back against market rate hike expectations at last…
Highlights Duration & Country Allocation: Global bond yields have been driven by growth and inflation expectations over the past year, but shifting policy expectations are now the more important driver. Tighter monetary policies…
The Reserve Bank of Australia maintained its cash rate target and pace of asset purchases unchanged following its monetary policy meeting on Tuesday. Instead, the central bank announced it is abandoning the 0.1% yield target for…
The sharp rise in short-dated Australian government bonds forced the RBA to purchase AUD 1 billion of April 2024 bonds last week in order to defend its yield curve control target of 0.1%. However, yields spiked again on Wednesday…
Highlights The surge in energy prices going into the Northern Hemisphere winter – particularly coal and natgas prices in China and Europe – will push inflation and inflation expectations higher into the end of 1Q22 (Chart of…
Highlights Cross-Atlantic Policy Divergence: A steadily tightening US labor market means that the Fed remains on track to formally announce tapering next month. Meanwhile, the ECB is signaling that they are in no hurry to do the same…
Highlights Q3/2021 Performance Breakdown: Our recommended model bond portfolio outperformed the custom benchmark index by +8bps during the third quarter of the year. Winners & Losers: The government bond side of the portfolio…
As expected, the Reserve Bank of Australia kept the cash rate target unchanged at 0.1% and maintained the pace of government security purchases at AUD 4 billion/week until at least mid-February 2022. Governor Philip Lowe’s…
HighlightsThe power shortage in China due to depleted coal inventories and low hydro availability will push copper and aluminum inventories lower, as refineries there – which account for roughly one-half of global capacity – are shut to…