– OCTOBER 2021 INSIGHTS BY THE CURVE TEAM –
- Following the RBA’s call to monitor lending standards, APRA implemented a key change regarding loan serviceability buffers.
- The Minutes for September highlighted the differing factors driving the RBA’s decision on QE as opposed to the cash rate.
- There was a considerable pick-up in yields across a range of assets as markets grappled with persistent inflation and imminent central bank tightening.
- It led to bonds trading at discounts and higher rates for longer tenors.
- Bonds trading at a discount pose an opportunity for investors, but also a dilemma.
- Longer tenors look increasingly attractive.
- With lockdowns in NSW and Victoria, the economy remains at two different speeds.