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Debt markets

This Month

Reserve Bank governor Michele Bullock.

Oil shock could put RBA in a bind on rate cuts

Amid rising global tensions and higher oil prices, the Reserve Bank faces a delicate balancing act as it weighs interest rate cuts against creeping inflation.

Donald Trump’s big beautiful bill will force a re-think of who funds America’s unsated borrowing habit.

Trump’s capital controls are a ticking financial time bomb

The damage from Donald Trump’s big beautiful bill won’t stop at home. For bond investors, this means revisiting the notion that Treasuries are a free lunch.

US Federal Reserve chairman Jerome Powell expects inflation to hit consumers.

RBA, Fed in no rush to cut interest rates, economists warn

Traders are betting big on US reductions despite the Federal Reserve hinting at higher inflation ahead. A solid jobs report has cast doubt in Australia.

As chaos reigns in the US, Porcelli warns of creaking labour market

Tom Porcelli built up a loyal following as RBC’s chief economist. He’s returned to Australia with a $US1.4 trillion manager and a bleak outlook for America.

President Donald Trump’s efforts to reign in public spending has failed to convince investors.

How America’s debt ‘ticking time bomb’ could curb the RBA

Investors are demanding higher returns for government debt globally, at levels not see since the GFC. Strategists warn this could result in less aggressive rate cuts in Australia.

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Wall Street views on how much Fed easing is likely to occur this year range from none to as much as 100 basis points. The most common forecast is for just one cut, in either September or December.

Traders reel in bets on US interest rate cuts, bonds sold off

Yields lifted across maturities by as much as 10 basis points, led by shorter-dated tenors more sensitive to US Federal Reserve monetary policy changes.

May

Dimon echoed comments he made last month, when he said he expects a “kerfuffle” in the Treasury market that prompts a Fed intervention.

Jamie Dimon says crack in the US bond market is ‘going to happen’

“I just don’t know if it’s going to be a crisis in six months or six years,” the JPMorgan Chase chief executive officer said.

$A emerges as unlikely Trump turmoil safe haven

It isn’t just sentiment, with the Australian dollar’s share of global central bank currency reserves more than doubling, mostly over recent months.

Victorian Premier Jacinta Allan and Treasurer Jaclyn Symes earlier this month. Despite steep deficits, investors shrugged at last week’s Victorian budget.

Investors shrug at Victorian debt bomb in search for new safe haven

For all the talk about the age of market vigilantism and deteriorating public balance sheets, there’s no lack of interest in Australian state government bonds.

“The staff viewed the possibility that the economy would enter a recession to be almost as likely as the baseline forecast,” the minutes said.

Fed well positioned to wait for clarity on outlook, minutes say

Policymakers judged the risks of both higher unemployment and inflation had risen since their March meeting, primarily due to the potential impact of tariffs.

Tim Toohey was chief economist at Goldman Sachs Australia for more than a decade.

Former Goldman economist splits from market, predicts big rate cuts

Now at Yarra Capital, Tim Toohey says the RBA will slash interest rates more aggressively than expected. Other economists say there’s little chance of that.

House in Gunnedah.

The bond market’s dire mortgage warning is at odds with the RBA

If Australians could fix their mortgages “US style” for 30 years as some have suggested they should, we would be staring at decade-high home loan rates.

Bond markets are pricing in rapid rate cuts from the RBA

Traders bet on July rate cut and more to follow

Bond traders are pricing in a good chance the RBA will deliver more rate relief at its next policy meeting in July followed by two more by year-end. Not everyone agrees.

Reserve Bank Governor Michele Bullock said so far, so good after cutting the cash rate on Tuesday.

RBA’s Bullock shocks market with ‘jumbo’ rate talk

Bond yields and the Australian dollar dropped as traders ramped up rate cut bets after Michele Bullock surprised with a more dovish tone on interest rates.

RBA could throw a curveball. Here are its 3 options

Markets and economists are expecting a second rate cut from the Reserve Bank this year, but there is always the chance of a surprise.

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Commercial real estate has (finally) turned a corner with returns on the up.

Time to jump back into commercial property before you miss out

The real estate sector may have turned a corner, but there are still opportunities to make good returns from distressed pricing if you know where to look.

President Donald Trump signs an executive order during an event to announce new tariffs in the Rose Garden of the White House.

White House chides Moody’s downgrade to US credit rating

The White House has assailed a decision by Moody’s to lower the US credit rating, casting it as a political decision.

RBA governor Michele Bullock is widely expected to lower the cash rate next week.

Market sticks with rate cut next week despite job surge

Investors temper their RBA bets after employment data smashes expectations, but they still see a strong chance of a move lower on May 20

Donald Trump’s back and forth on tariffs has kept the market on its toes.

Rate cuts still on the way after US-China tariff pause

Traders now expect ‘just’ three rate cuts in Australia after the US-China trade deal, but investors are still worried about the health of the global economy.

RBA Michele Bullock will cut rates because Australia is a small economy exposed to global developments, say economists.

Why the RBA is set to break away from the Fed and cut rates

Australia can act more swiftly than the US, which typically sets the tone for global monetary policy.

Federal Reserve chairman Jerome Powell wants to see more data before deciding on cutting interest rates.

Three rate cuts coming but investor fear Fed’s next move

The Fed kept rates at 4.3 per cent; traders are still betting on a July rate cut, but pundits warn inflation and slowing growth could stop it from doing anything.

A surge in Asian currencies including the Taiwanese dollar has lifted the Australian dollar.

Hopes of Asian trade deal send $A to five-month high

A surge in currencies across Asia has pushed the currency above US65¢ amid hopes the White House is on the brink of announcing a deal in the region.

China needs its export strategy to succeed if it is to sustain even a moderate level of economic growth.

Expecting cheap Chinese goods to flood Australia? You may be shocked

Barrenjoey’s Andrew Lilley says rerouted goods from Donald Trump’s trade war will lift prices and force the Reserve Bank to be wary about rapid rate cuts.

Even if Donald Trump moderates his tariff threats, the US economy will still take a hit.

Not invested in bonds? Here’s why you should be in this climate

Even if Trump walks back much of his tariff agenda, a 10 per cent global levy and 60 per cent on China would still hit the US economy. For investors, that means it’s time to play defence.

April

Michelle Bullock, governor of the Reserve Bank of Australia, is widely expected to lower the cash rate next month.

Bond market too optimistic about rapid rate cuts, investors warn

Benign inflation data has boosted bets of a rate cut next month, but fund managers caution against the aggressive easing path implied by markets.

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