Bonds/Interest Rates

On JP Morgan’s analysis, recent issues of mortgage backed securities from small banks and non-banks have been at a loss, indicating the market is still in serious trouble.

Stock markets again closed little changed last night as poor employment data sent the US dollar south.

The IMF has downgraded its forecast for 2008 global GDP growth, but not by much.

According to the Commonwealth Bank housing prices provide a good indicator for interest rate movements as increases mean increased wealth, which spurs consumer spending.

There’s only one way to describe Wall Street last night – all over the shop.

The Australian economy is booming, headline prices are raging, and both government contenders are intent on fiscal stimulus. The RBA is under the pump.

The Howard Government has announced tax cuts on the back of stronger than expected revenues but the move is likely to add to the current inflationary pressures in the Australian economy.

Global food prices are rising and the trend is likely to continue according to ANZ Bank, with less land, climate change and increased use of biofuels all contributing factors.

CPI numbers are in for Europe, the UK and US this week amidst a wealth of US data but very little locally.

Westpac economists have lifted their expectations for the RBA cash rate to reach 7% by mid-2008 at the latest.