HSBC with the note. The prevailing view now, as it was at the beginning of 2020, seems to be that rising budget deficits mean bond supply will increase, which in turn pushes bond yields higher. US debt sustainability was recently brought back into focus when the US credit was downgraded by a rating agency citing
The Reserve Bank of Australia (RBA) has published data on outstanding mortgage debt, which increased by 0.31% in August to be up only 0.9% for the quarter: It was the weakest quarter of mortgage growth since October 2020 during the height of the pandemic. Owner-occupier mortgage credit growth rose by 1.0% over the quarter, whereas
Allegra Spender’s cognitive dissonance as Teal independent MP for Sydney’s upscale seat of Wentworth never ceases to astound. Last year, Spender sought a significant increase in immigration into Australia, claiming that “migration is a priority in Wentworth” (see here and here). Spender recently decried Australia’s rental crisis while supporting the Albanese Government’s record immigration policies,
The Market Ear on stretched markets. Too many bears The spread between AAII bulls-bears has collapsed lately. Similar “moves” in sentiment has resulted in brutal SPX bounces. Refinitiv Keep it simple NASDAQ bouncing on big support levels… Refinitiv Less “freaky” VIX The VIX inverted vs SPX gap is shrinking rapidly. Regular readers of TME are
Last week, I had a terrific two-hour discussion on immigration policy with Martin North from Digital Finance Analytics (full video interview here). One of the topics discussed was why the Australian Treasury is such a rabid supporter of mass immigration when it is clear as day that it is detrimental to Australian living standards and
The Australian Bureau of Statistics (ABS) on Wednesday released monthly CPI inflation data, which showed that overall rents across the combined capital cities rose 7.8% year-on-year in August: It was the strongest annual rate of rental growth since June 2008 when net overseas migration was also hitting an all-time high: The surge in rents has
The latest charts are from BofA which seems unable to read its own chart. Property sales are down year on year, up for second hand: The land auction premiums says it all about L-shaped recovery: Instracuture bonds are down sharply year on year as well: Cement tells the tale: Actually, s does steel, but less
DXY reversed hard: AUD too: It isn;t obvious that CNY is a semi-floating currency: Brent rolled: Dirt soared: EM stock not so much: But miners popped: Junk firmed: Yields eased slightly: Stocks bounced but did not recapture support: US GDP revisions offered the market reprieve as the consumer was marked down. Goldman has more. Real
With Premier Dan Andrews deciding to call it quits, I thought it was a good excuse to examine Melbourne house prices to see how they are tracking. According to CoreLogic’s daily dwelling values index, Melbourne is the nation’s biggest house price loser, falling the most since the RBA began lifting interest rates in May 2022,
Local Reads: Greens want superannuation theft made a crime in Labor’s workplace bill – The Guardian Australian students shun education degrees as fears grow over ‘unprecedented’ teacher shortage – The Guardian Waiting for a crisis: Fears as NSW enters festival season without drug reform – The SMH Coalmine approvals in Australia this year could add