Yield Target News Today

The opening chapter on inflation and the accompanying rate hikes are worrying property investors, though the story is a long way from finished. According to Aussie cash rate futures, the market is pricing in for cash rates to hit almost 3.6% by the middle of next year. So, I...

The RBA’s plunge into negative equity will have to be reckoned with, both in Martin Place and in Canberra.

- Unexpected cut to key lending rates in China; Move seen as opening the door to more monetary easing actions ahead. - US markets closed for holiday.

- Plethora of rate decisions that highlight the divergence of central bank policies (Norges hikes by 25bps; SNB, Taiwan, Philippines, Indonesia hold);

- Major European PMI Services data remained robust but continued slow compared to the prior peaks seen earlier this year (Beats: France, Germany, Euro

- Markets continue to monitor energy crunch and China Evergrande Group’s debt crisis. - Brexit jitters on reports the UK was planning to issue a threa

5/4/2021 10:06:08 AM GMT Notes/Observations Asia - RBA left Cash Rate Target unchanged at 0.10% and maintained its 3-year Yield Target at 0.10% (both as expected); Keeps its dovish undertones and put focus on its July meeting whether to retain the April 2024 bond or shift into the November 2024 maturity for its 3-Year Yield Target; to also consider a 3rd QE program at that time. - Australia Mar Trade Balance: A$5.6B v A$8.2Be. - Australia MP Ted OBrien seeks to fight Communist China with boycot...

- 05:20 (EU) Daily ECB Liquidity Stats. - 05:30 (DE) Germany to sell combined €6.0B in 3-month and 9-month Bubills. - Sells €B vs. €3.0B indicated in 3-month BuBills; Avg Yield: % v -0.6372% prior; Bid-to-cover: x v 2.07x prior (Apr 6th 2021). - Sells €B vs. €3.0B indicated in 9-month BuBills; Avg Yield: % v -0.6472% prior; Bid-to-cover: x v 1.55x prior (Apr 6th 2021). - 05:30 (NL) Netherlands Debt Agency (DSTA) to sell €2.0-4.0B in 3-month and 6-month bills. - 05:30 (ZA) South Afri...

- - Speakers - German Chancellor Merkel said to be under pressure to lay out a path to ease Germany’s coronavirus lockdown - France Fin Min Le Maire stated that he was not concerned about the recent increase in borrowing rates. Govt had spent €16B of the stimulus plan. Would not raise taxes or tax household savings - BOJ said to be prepared to defend Yield Curve (YCC) range before its March policy review. BOJ had no pre-set level for stopping yield rise and would depend on the speed of...

Following 2/2/2021 10:36:29 AM GMT EU Mid-Market Update: Various EU Q4 GDP data showing lockdowns have less impact compared to last spring; issuance front remains heavy. Notes/Observations - UK Jan Nationwide House Prices registered its 1st monthly decline since June - Various EU GDP data (Euro Zone, Italy and Portugal) showed less economic fallout from the coronavirus pandemic from last spring’s lockdown - Issuance remains steady as countries and companies race to...