This from media outlets here in Australia:
- Some of Australia’s biggest investors are piling into bonds, in a bet backing RBA Governor Philip Lowe’s assessment that a series of robust interest-rate hikes will help get inflation under control next year.
- The Construction & Building Unions Superannuation Fund has been lifting exposure to bonds “across the board” over the past three to six months, according to Chief Executive Officer Justin Arter.
- Australia’s biggest pension fund AustralianSuper has increased its debt holdings to 10 per cent from just under 6 per cent
- Janus Henderson Group’s Australian head of fixed income says yields are peaking now as they usually do early in tightening cycles.
The RBA projects inflation will come down from its peak over the next 18 months or so. Markets are pricing a cash rate around 3.75% but the RBA is not.
US inflation is still rising, but expectations there are it'll come back down ahead also. We'll see ....
Latest US CPI report:
And, Fed outlooks include this from Nomura:
The Australian cash rate is barely off the floor:
