AUD Bond Update

If things are so bad as RBA says, why aren’t they cutting rates ?

Market says they will, in 2015. http://www.theage.com.au/business/the-economy/rba-does-the-interestrate-cut-threestep-20141205-1212wd.html

10 year AUD notes broke under 3% before rising to close the week at 3.03% on weaker US treasuries prices.

Hopefully the yields will hold up (higher) when the big 4 Aussie banks does their fund raising for the extra A$ 30 bio in capital that they have been ordered to hold. http://www.bloomberg.com/news/2014-12-06/australian-banks-need-unquestionably-strong-capital.html

AUD UPDATE

 

Bond Prices (indicative)

aud bonds