Econosights – rising bond yields
The rise in yields has been driven by several simultaneous factors. These will be explored in this week’s edition of Econosights and look at the impact of rising bond yields.
Tag: rising
Oliver’s insights – home ownership
This note looks at the decline in Australia’s home ownership rate since the mid-1960s and what has driven it.
2021-22 saw poor investment returns – the bad news and the good | AMP Capital
2021-22 saw poor investment returns – the bad news and the good Key points 2021-22 was a rough year for investors as high inflation, rising interest rates and recession fears impacted. Shares could still fall further as interest rates continue to rise and recession risks are high. However, inflation pressures are showing some signs of easing which may take pressure off central banks from later this year. Some key things for investors to keep …
Australia’s Achilles’ heel – high household debt and rising interest rates…it’s not as bad as it looks, but it’s still an issue | AMP Capital
Australia’s Achilles’ heel – high household debt and rising interest rates…it’s not as bad as it looks, but it’s still an issue Key points Australian household debt has risen dramatically since the 1980s and is high compared to other countries. The rise is not as bad as it looks because it’s been matched by rising wealth and debt servicing problems are low. However, this will likely change as interest rates rise further & if …
Econosights: Implications from Australia’s energy “crisis” | AMP Capital
Econosights: Implications from Australia’s energy “crisis” Key points Australian electricity and gas price increases will impact most consumers from 1 July 2022. We expect the increase in energy prices to add 1 percentage points to headline inflation. We now see headline inflation peaking at 7% in the September quarter and trimmed mean inflation peaking at 5.5% in the December quarter. There are no changes to our expectations for the cash rate from the lift in …
Another energy shock and the threat from higher petrol prices | AMP Capital
Another energy shock and the threat from higher petrol prices Key Points Oil prices have spiked on the anticipation and now reality of restrictions on Russian oil supply from the war in Ukraine. This is driving a sharp rise in petrol prices which will hit household spending power. Fortunately, there is an offset in Australia from the boost to national income from higher energy prices and commodity prices generally and scope for the Federal Government …
Oliver’s Insights – US political protests, inflation and rising bond yields
US political protests, inflation and rising bond yields Key points US protests are only an issue for investment markets if they significantly impact economic activity. Global and Australian recovery will boost bond yields and there is good reason to believe that (after yet another false ending) the now nearly 40-year super cycle decline in bond yields may be at or close to over. But the end of the bond bull market is likely to be …
Rising bond yields and the end of the super cycle bull market in bonds | AMP Capital
Rising bond yields and the end of the super cycle bull market in bonds Key Points It’s normal for bond yields to rise in economic recoveries but it’s looking increasingly likely that the nearly 40-year super cycle decline in bond yields is over. This will remove a key tailwind for investment returns over the decade ahead but as we have seen this year bond yields are unlikely to go up in a straight line. Introduction …
Millennials and money: what does the future hold? | Money & Life
Millennials and money: what does the future hold? With the rising cost of housing, an aging population, climate change and now a pandemic falling squarely on the shoulders of Australia’s millennials, how is this generation faring financially? The first millennials (born between 1981 and 1996) are turning 40 this year. Still, despite more than twenty years in the workforce, it seems their financial wellbeing isn’t guaranteed. A Commonwealth Bank study has found that almost two thirds (61 …
Coronavirus continues to cause havoc globally and in Australia – but here are five reasons for optimism | AMP Capital
Coronavirus continues to cause havoc globally and in Australia – but here are five reasons for optimism Key points The news on coronavirus has been bleak again lately – with rising cases globally & the ongoing NSW lockdown. However, there are five reasons for optimism: lockdowns still work against Delta (eg, in SA & Victoria); vaccines are working; once lockdowns end economic activity rebounds quickly; the threat posed by Delta will keep fiscal & monetary …