Bonds/Interest Rates

Little change in the Fed’s monetary policy rhetoric yet a rally on Wall Street failed on the death. Dow up 30.

Australian retail sales were surprisingly soft in September, increasing speculation of an RBA rate pause.

Gold soared last night despite a stronger greenback following a big purchase from the Indian central bank. Dow down 17.

The RBA has raised by 25 points only, consistent with “gradual” plan.

The RBA today lifted the cash rate from 3.25% to 3.50%.

The market is pricing in 2.25% of increases to Australian interest rates by the end of 2010 but Westpac sees such assumptions as too aggressive given the potential for financial distress.

Positive manufacturing data across the globe failed to stem volatility on Wall Street. Dow up 76.

Australian inflation has been moderating for months and actually fell in September, but it’s unlikely to be enough to forestall a rate rise.

Stocks drop and the VIX pops past 30 as increasingly jittery investors rush to cash in on yesterday’s gain. Dow down 2.5%.

October 29, 2009 was not much like 1929. Last night the Dow crashed up 175 points on the back of a strong GDP number.