Finance & Fury Podcast

Welcome to Finance and Fury. This episode we will be looking at what is happening in the bond market, how the RBA is struggling to maintain their targets on bond yields for 3y and 10 year - as well as some of its implications on the debt markets and government. What is going on? over the last few weeks there has been a surprise to the markets – the emergence of a higher 10-year rates on government bonds – the rates went up about 0.45% in Feb and 0.55% since the start of the year This was pretty surprising but it actually does make sense in a way – why? To start with – all we have to do is look what has occurred over the past year – Looking back on 2020 there was an unprecedented level of stimulus policies - both fiscal and monetary – QE, corporate bond purchases, ZIRP, stimulus payments The RBA announced on Feb 1 that they were doing an extension to its QE program that they started last year by a further A$100 billion - They have also said it doesn’t expect to increase interest rates until 2024 Both of the