Bonds/Interest Rates

Commonwealth Bank expects the Australian economy will deliver near-trend growth in 2010, better than the sub-trend performance expected for the global economy as a whole.

The S&P marked a new high last night as a positive home sale number spurred on buyers in a thin market. Dow up 50.

A surge in M&A activity and broker upgrades sent Wall Street higher last night despite a stronger greenback. Dow up 85.

A 1% jump in the US dollar index sent stocks tumbling across the board last night, as Greece scored another downgrade. Dow down 132.

The popular press is now expecting a pause in rate rises following the RBA deputy governor’s speech yesterday. Economists don’t necessarily agree.

The Fed restated its unchanged quant easing exit dates last night in order to quell speculation. Dow down 10.

A weaker than expected Australian GDP result will not deter the RBA from its tightening phase.

Despite three rate rises in three months and a further softening of RBA rhetoric, brokers stand firm on their call for another hike in February.

A big jump in the PPI sent dollar shorts scurrying to cover last night, while other data were mixed. Dow down 49.

The December RBA minutes indicate the rate rise was a close-run thing.