Bonds/Interest Rates

As the US government passes its Fannie & Freddie rescue plan into law, the UK Treasury is preparing its own means of saving mortgages.

The RBA will likely take solace in the fact the June quarter CPI met expectations.

The Dow closed up 135 on its late rally last night following news that sent oil falling and financials soaring.

According to TD Securities economic indicators suggest the Australian economy is now close to a recession, meaning risk is to the downside for growth, the currency and interest rates.

B of A beat the Street but failed to ignite the market for a second week as oil bounced. The Dow was down 30 but there were some very poor aftermarket results.

The June quarter producer price index was not nearly as bad as was expected.

Will the RBA raise rates again in Australia? It might come down to this week’s CPI release.

What happens if foreign sovereign investors abandon Fannie and Freddie?

The moratorium on short-selling had its effect last night as traders rushed to cover positions in financials. Oil fell another US$4 and the Dow shot up 276.

The growth rate in the Westpac-Melbourne Institute Leading Index slowed further in May, suggesting a further slowing in the Australian economy in coming months.