Bonds/Interest Rates

The market had expected the Australian labour market would weaken in July but it proved its resilience with unemployment coming in unchanged at 5.8%.

The Dow dropped over 100 points early on weak economic data but battled back during the session to close down 39. (Locked for subscribers until 10:00 AEST)

In a choppy session a big drop in US personal income was a conspicuous harbinger amidst the euphoria. Dow up 33.

Australian retail sales for June were weaker than economists had predicted.

The RBA has left its cash rate at 3% again and no longer sees “scope for further easing”.

The S&P hit 1000 last night to mark a 50% rally spurred on by global manufacturing data. Dow up 114.

There is a proposal at hand that Australian banks be allowed to issue “covered” mortgage bonds in order to restart the securitisation market. Is this just a step back into hell? FNArena responds to a reader enquiry.

Evidence the economic recovery in Australia remains fragile can be found in the fall in the ANZ job ads series in July, the 15th consecutive month of decline in the measure.

A better than expected GDP result and an encouraging manufacturing read gave investors plenty to cheer about, but caution was always just below the surface.

The TD Securities-Melbourne Institute Monthly Inflation Gauge jumped in July and while it remains below the RBA’s target band it does cloud the inflation outlook.