Bonds/Interest Rates

The first quarter PPI increase was the highest on record.

It’s CPI time in Australia, but unless the number is extraordinarily high consensus still has the RBA on hold in May.

The Dow leapt 229 points on earnings reports from Google and Citigroup, while oil closed at US$117/bbl.

Credit card debt in February grew at its lowest rate in 13 years and according to CommSec this adds to the evidence enough has been done for the RBA to have finished with interest rate increases.

Some earnings reports that didn’t disappoint and another benign CPI conspired to send the Dow up 250, the greenback to hell, and commodity prices to the moon once more.

Australians are now as wealthy as they have ever you been, didn’t you know.

The latest Westpac-Melbourne Institute Leading Index of Economic Activity confirms the trend suggested by previous data: the economy in Australia is slowing.

Minutes from the Reserve Bank of Australia’s latest meeting suggest increased confidence inflation is slowly coming under control, potentially setting the scene for rate cuts this year or next.

The Dow closed down 23 points last night as one of the big commercial banks reported greater than expected losses.

..but the finance ministers are concerned about US dollar volatility, and are expecting the world economic slowdown to worsen.