Contrary to suggestions in my last post, yields across the yield curve have moved a bit today…as the above chart shows the curve is up between 5bp and 9bps. This is a result of the Reserve Bank increasing its inflation outlook over the next 2 years. The Reserve Bank believes inflation will be above its …
Category Archive: Fixed Interest
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May 03
Australian Government Bond Yield Curve
With last week’s high CPI figures coming out there has been increased talk about the Reserve Bank increasing interest rates. The above yield curve chart shows that since 12 April, the yields on government bonds have actually decreased across the board by around 20bps suggesting less long term confidence in our economy than two weeks ago. …
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Mar 31
A Look at Bond Risks & the GFC
I’ve just uploaded a neat little article (if I do say so myself) on the various risks of bonds and what happeneded during the GFC. Its more of an education piece and if you’re interested in a read please click here. Send article as PDF
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Mar 21
Latest Australian Government Bond Yield Curve
As expected the yield curve is much flatter than the last couple of months but nothing too dramatic. The Japanese tragedies will have an impact on global economy as well as its own but it is more likely to be a short term negative impact that will possibly turn into a growth story later in …
Mar 16
SPIVA Report – Active Managers Bad Year
My favourite investmnent returns report was released yesterday by Standard and Poors, their SPIVA Report. Its my favourite because unlike other investment return analysis/reports, this report takes into consideration investment fund survivorship. As many of us know, when an investment fund continues to underperform it typically closes never to be seen again and the reports …
Jan 10
Australian Government Bond Yield Curve
First post in a while and the first for the new year, so I thought I’d start with a popular favourite…the Australian Government Bond Yield Curve. The above chart shows the changes in the yield curve over the pas 12 months and it certainly has been an interesting ride. Equities have been largely out of favour thanks …
Nov 17
Australian Government Bond Yield Curve – Nov 2010
Not surprisingly since August 31 interest rates have increased across the board on the back of stronger local economic data (good unemployment, strong China etc) and now the yield curve has rates above those back at the end of May 2010. It will be interesting to see what happend to interest rates over the coming days/weeks given …
Nov 02
The RBA goes up and so does the Yield Curve
Normally I try and produce the chart before the RBA’s decision but was a little slow this time but it is a little intersting to see the market’s reaction to the RBA’s decision to increase the cash rate to 4.75% and its shown in the chart above…an increase in yields across the all maturities although …
Oct 03
Bond Yields – Rate Rise now a near Certainty
As mentioned around a month ago after the month of August a rate rise from the Reserve Bank appeared a long way away but September has certainly been a month for the risk takers. Aussie Dollar near record highs and the sharemarkets are up so of course that means government bonds are down. The above …
Oct 01
AUD and Parity with USD – only the bulls can maintain it
All this talk about Australian Dollar and US Dollar parity got me thinking about the behaviour of the Aussie relative to other assets, namely the sharemarket. The above chart shows that, with the exception of the first half of 2008 when the the sharemarket was a little more forward thinking than the RBA, there has …