Highlights Global Duration: US Treasury yields have started to creep higher and the move is likely to continue in the coming months regardless of who wins the White House. Reduce overall global duration exposure to below-benchmark,…
Yesterday was a big day for Australian policymakers, with announcements from both the fiscal and monetary authorities. In aggregate, they delivered a mixed bag. The Reserve Bank of Australia remains as committed as ever to policy…
BCA Research's Foreign Exchange Strategy service sees further cyclical upside in the AUD. Rises in the AUD continue until it becomes expensive. On this basis, the Australian dollar remains accommodative. Our purchasing…
Highlights While the bull market in the Australian dollar might pause temporarily, it will advance further this cycle. The key catalyst for the AUD is an improving balance-of-payments backdrop. Despite its explosive rise, the…
Australia's August NAB business survey sent a mixed message. While confidence improved from -14 to -8, current conditions stumbled from 0 to -6. This bifurcation highlights that Australian firms continue to feel the impact of…
Since March, the Reserve Bank of Australia has implemented a yield curve-control regime where it pegs the 3-year yield at 0.25%. From May until last week, the RBA was able to achieve stability in the 3-year yield without…
Highlights Butterflies & Yield Curve Models: With bond market volatility now back to the subdued levels seen prior to the COVID-19 market turbulence earlier in 2020, it is a good time to update our global yield curve valuation…