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Debt markets

February

Reserve Bank governor Michele Bullock addresses the media on Tuesday.

Don’t believe the doomsayers – more rate cuts are on the way

The bond market is pricing in two to three rate cuts this year and history suggests it always tends to get it right.

Rob Mead at Pimco Australia says don’t believe the debate on rate cuts. More are coming.

RBA rate caution ‘rubbish’ with more cuts to come

Bond managers have dismissed the governor’s reticence on further rate cuts, with some even predicting as many as three more rate cuts this year.

Markets are sticking with rate cut predictions despite RBA caution.

Market tips two more rate cuts despite RBA caution

Bond markets are sticking with their rate cut forecasts after the central bank finally joined the global easing campaign by lowering the cash rate to 4.1 per cent.

The RBA has a rich history of surprises.

Don’t underestimate the RBA’s willingness to shock the market

The Reserve Bank has a rich history of surprises compared with the US Federal Reserve and Bank of England, an analysis by Commonwealth Bank shows.

RBA’s radio silence is a telling sign for next week

There’s a lot of money riding on the central bank’s rate decision. While the market and most economists are all but convinced, it’s still a line ball decision.

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US Federal Reserve chairman Jerome Powell speaks during a Senate hearing.

US CPI data points to prolonged rate hold: economists

Consumer prices rose at a faster pace than expected last month, and the probability of rate cuts by the Federal Reserve has fallen, economists and strategists say.

Richard Quin at Bentham likes investing in state government bonds because of their juicy returns.

There’s a reason why investors are flocking to fund Australian states

State governments grappling with credit downgrades have no choice but to pay bond investors more money to fund their ambitious election promises.

Donald Trump’s policies are expected to stoke inflation, but the market should be worried about liquidity instead.

Ignore what market says on rates and buy these assets instead

Traders are still pricing in less than half a percentage point of US interest rate cuts for 2025, but that assumption is flawed.

Banks will restrict their funding to prime commercial property in the coming years.

Investors storm bond sale ahead of possible RBA rate cut

More than 100 big investors piled into the new $15 billion 2036 Treasury bonds which received more than $84 billion in bids.

Jo Masters at Barrenjoey says Trump tariffs are heightening uncertainty.

These five economists make a bold prediction on next rate cut

Analysts at Barrenjoey, Deloitte, KPMG, Judo Bank and Oxford Economics are tipping that the Reserve Bank will keep rates on hold on February 18.

Paul Bloxham, chief economist at HSBC.

Meet the most accurate economic forecaster of 2024

The Reserve Bank will cut the cash rate, according to Paul Bloxham, but don’t count on a big drop in borrowing costs as this cycle will be a short one.

Paul Bloxham, pictured in Sydney on Monday, loves talking about the economy. Growing up in Perth, he used to be a theatre kid.

Top forecaster Paul Bloxham says trade war changes the RBA path

HSBC’s chief economist says the RBA will only cut twice in 2025, beginning this month, and once in 2026.

January

Reserve Bank governor Michele Bullock.

Housing market will welcome RBA rate cuts

The beleaguered residential property market will be one key transmission mechanism through which the RBA’s interest rate relief will affect the wider economy.

Jerome Powell of the US Federal Reserve is hopeful that inflation will slow further this year.

US Fed cools rate cut talk as prospects of RBA easing balloon

If Michele Bullock holds the cash rate steady on February 18, it will represent the most counter-consensus decision since that of Glenn Stevens in April 2015.

2/163 North Road sold at auction for $1.66 million in Eastwood, Saturday 16th of November 2024.

Major banks close to consensus on February interest rate cut call

Traders imply an 80 per cent chance of an interest rate cut next month to 4.1 per cent though the Reserve Bank could opt to wait for more data.

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Queensland’s debt will skyrocket to $218 billion by 2028, based on the mid-year budget published on Thursday.

‘The numbers are breathtaking’: Qld’s interest bill worth 11 new hospitals

The states’ debt-servicing costs will probably continue to skyrocket as investors demand compensation for their fiscally reckless ways.

Kris Bernie at Kapstream says Donald Trump is playing the negotiation game.

Why these investors aren’t worried about Trump tariffs yet

Fund managers are hopeful the new US president recognises that tariffs are more effective as a threat than being acted on.

Donald Trump has benefited politically from a dispersion of domestic economic outcomes.

Why Donald Trump needs to mind the gaps

A dispersion of economic outcomes helped the US president return to the White House, but he faces the task of reorienting this phenomenon.

US Fed chairman Jerome Powell.

Die-hard bond traders bet the next Fed move is higher, not lower

A blowout US jobs report has prompted a small corner of the bond market to start pricing in the possibility of rate hike in the US this year.

Howard Marks at Oaktree.

Four reasons investors should be very nervous in 2025

Alarm bells are ringing for fund managers and economists about the mounting threat of asset bubbles, which may trigger chaos in financial markets.

Tim Toohey at Yarra is tipping an interest rate cut as soon as next month.

Why Tim Toohey is switching to cash

Tim Toohey from Yarra Capital says fewer RBA board meetings will mean less policy agility to react to monetary turning points.

With so much dry powder waiting to be deployed, managers are looking to Trump to finally pull the trigger.

How Trump could (finally) unleash $5.8 trillion of private money

A new era dawns for investors on the promise of deregulation and tax cuts under Donald Trump. Will they get the certainty needed to put all that dry power back to work?

Bond markets are largely ignoring December’s robust jobs report.

Bond markets stick with early rate cut after jobs blowout

While bond investors modestly tempered RBA rate cut bets after jobs data smashed expectations, they have still priced in a strong chance for a move in February.

The spike in bond yields is unlikely to keep RBA governor Michele Bullock from finally cutting interest rates this year.

Bond turmoil won’t derail RBA’s rate cut plan

Despite bond yields spiking around the world, analysts say the Reserve Bank is still on track to cut interest rates this year.

Trailers at the Port of Baltimore in the United States. The Australian dollar has fallen below a key threshold when measured against important trade partners.

ASX to drop as markets fret currency slump will put off rate cut

The Australian dollar has fallen below a crucial threshold when measured against important trade partners, complicating the RBA’s assessment of interest rates.

Original URL: https://www.afr.com/markets/debt-markets