Australian Bond Exchange Weekly Update
10th October 2025
Key Points
- Australia: The Reserve Bank of Australia (RBA) left the cash rate unchanged at 3.60% p.a. Monthly CPI rose 3.0% YoY in August, while the Trimmed Mean CPI (which excludes large price rises and falls such as electricity and fuel) increased 2.6% YoY. On a month-on-month (MoM) basis, headline prices rose modestly, reflecting stable underlying inflation pressures.
- United States: The Federal Reserve cut its target rate by 0.25% p.a. to 4.00%–4.25% p.a. August headline inflation climbed to 2.9% YoY, up from 2.7% YoY in July, while Producer Price Inflation (PPI) declined 0.1% MoM, suggesting easing cost pressures in the production sector.
- United Kingdom: The Bank of England (BoE) kept its Bank Rate steady at 4.00% p.a. August CPI fell slightly to 3.6% YoY, down from 3.8% YoY in July. The softening inflation trajectory supports the BoE’s cautious approach as core price growth stabilises.
- Eurozone: The European Central Bank (ECB) maintained its deposit rate at 2.00% p.a. September inflation increased marginally to 2.2% YoY, compared with 2.0% YoY in August, reflecting mild service-sector inflation offset by lower goods prices.
Market Insights
- Current Investment Opportunities
- RBNZ cut cash rate by 0.5% p.a. to 2.50% p.a.
- US Government Shutdown Continues
RBNZ cut cash rate by 0.5% p.a. to 2.50% p.a.
The Reserve Bank of New Zealand (RBNZ) surprised markets this week with a 50-basis-point cut, lowering the Official Cash Rate (OCR) to 2.50% p.a. The central bank noted that further easing remains possible if domestic conditions weaken. Following the announcement, the New Zealand dollar fell around 1% against the US dollar, reaching a six-month low of US$0.5743, while the Australian dollar climbed to NZ$1.14, its strongest level in nearly a decade.
Since last year, the RBNZ has reduced rates by a cumulative 3.00%, as inflation has returned to the 1–3% target band and policymakers look to support growth amid a cooling economy.
US Government Shutdown Continues
The US government shutdown has entered its second week, as political deadlock over funding for Affordable Care Act subsidies continues to stall progress in Congress. The IRS has furloughed more than 34,000 employees, fuelling concerns over administrative delays and potential fiscal drag.
Economists warn that a prolonged shutdown could weigh on fourth-quarter GDP and erode investor confidence in US fiscal management. However, financial markets have so far remained largely stable, reflecting expectations that a resolution will be reached before significant economic fallout occurs.
Current Investment Opportunities
Contact your ABE adviser now to take advantage of this opportunity today
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Fixed Income Opportunities
Below is a snapshot of actively traded fixed income securities available through ABE, including indicative yields and coupon rates (p.a.).
| Yield To Maturity (p.a.) | Coupon (p.a.) | Investment | Maturity |
|---|---|---|---|
| 6.66% | 4.50% | Goodyear Bond Linked Security | 22 March 2027 |
| 6.31% | 8.00% | Jaguar Land Rover Bond Linked Security | 20 December 2026 |
| 6.00% | 6.00% | Under Armour Inc Bond Linked Security | 18 June 2026 |
| 6.77% | 4.50% | Jaguar Bond Linked Security | 19 November 2026 |
| 6.25% | 6.25% | Flight Centre Credit Linked Security | 6 July 2026 |
| 5.50% | 5.50% | Rolls Royce Bond Linked Security | 19 February 2026 |
As part of our ongoing commitment to offering quality investment opportunities, we’re pleased to present a selection of debt securities for this week – all conveniently denominated in Australian dollars and currently available to clients of Australian Bond Exchange.
Investors seeking reliable income, portfolio diversification, and capital stability may wish to explore these opportunities. Our advisers have years of industry expertise and trusted access to the bond market.
✅ Attractive fixed income returns
✅ AUD-denominated, no direct currency risk
✅ Exposure to top-tier global issuers
✅ Professionally vetted by our investment team
✅ Limited availability
These exclusive offers are available to clients of Australian Bond Exchange, so now may be an ideal time to explore how they could enhance your investment portfolio.
Talk to our team today.
*Data accurate as at 10.10.2025
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