Australian Bond Exchange Weekly Update
09 April 2026
Market Insights
- Introducing a new 6.50%- 7.0% Fixed Income Offering
- Australian residential property market is cooling
- US Economy Defies Expectations as Strong Jobs Clash with Sticky Inflation
- The World Bank downgraded growth across South Asia
Key Points
- Australia:The RBA increased cash rates by 0.25% to 4.10% p.a. at its March meeting. February CPI decreased slightly to 3.70% p.a., and the Trimmed Mean was 3.30% p.a.
- United States: The Federal Reserve left the federal funds rate unchanged at 3.50%–3.75% p.a. at its February 2026 meeting. The latest U.S. CPI inflation rate 2.4% (YoY) as of February 2026.
- United Kingdom: The Bank of England held Bank Rate steady at 3.75% p.a. and CPI for February was unchanged at 3.0% p.a.
- Eurozone:The European Central Bank kept its key deposit facility rate unchanged at 2.00% p.a., and recent data show inflation in the euro area increased slightly to 1.90% p.a., up from 1.70% in January.
| Region | Policy Rate | Latest Inflation (YoY) |
|---|---|---|
| Australia | RBA Cash rate 4.10% p.a. | 3.70% p.a. to February 2026 |
| United States | Fed Funds 3.50-3.75% p.a. | 2.40% p.a. to February 2026 |
| United Kingdom | Bank rate 3.75% p.a. | 3.0% p.a. to February 2026 |
| Eurozone | Deposit facility rate 2.00% p.a. | 1.90% p.a. to January 2026 |
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Australian Residential Property Market is Cooling
The recent drop in auction clearance rates signals cooling demand and easing price pressure, which matters directly for the Reserve Bank of Australia. Softer housing conditions reduce the “wealth effect” and slow credit growth, both of which help ease inflation pressures. While housing is only one part of the inflation picture, weaker auctions suggest that higher interest rates are finally biting, giving the central bank more confidence that policy is working.
Auction clearance rates by city
US Economy Defies Expectations as Strong Jobs Clash with Sticky Inflation
The US economy delivered a strong upside surprise in March, adding 178,000 jobs—well above expectations—reinforcing the narrative of resilience despite a downward revision to February’s payrolls. However, beneath the surface, the data remains mixed: hiring momentum is modest, durable goods orders declined, while core capital investment showed signs of recovery. At the same time, inflation expectations continue to edge higher, keeping underlying price pressures firm. This combination of solid growth and persistent inflation is complicating the Federal Reserve’s path, with policymakers likely to keep rates higher for longer as geopolitical risks and energy-driven inflation add further uncertainty to the outlook.
The World Bank downgraded growth across South Asia
The World Bank cut South Asia’s growth outlook to 6.3% for 2026, citing energy shocks, inflation risks, and weaker global conditions. Asia is being squeezed by a classic external shock: higher oil prices, weakening currencies, and rising inflation are forcing central banks into a tight corner, where they must navigate slowing growth without losing control of price pressures.
Fixed Income Opportunity:
SoftBank Group Corp. Credit-Linked Note Now Available
A new 6.50–7.0% p.a. A$ fixed-income offering from SoftBank Group Corp. is now open to eligible retail and wholesale investors. This bond pays semi-annual coupons and offers exposure to one of Japan’s most recognised and diversified companies.
About SoftBank Group Corp.
SoftBank is a Japanese telecommunications, mobile, electricity, and software conglomerate founded in 1981 and listed on the Tokyo Stock Exchange. SoftBank Group is a globally diversified technology and investment conglomerate with a vast portfolio of subsidiaries and strategic holdings. The company is widely recognised for its long-term vision, large-scale capital deployment, and focus on transformative technologies.
- Its operations span multiple sectors, including:
- Telecommunications
- Investment Management (Vision Funds, one of the world’s largest technology investment funds)
- Semiconductors
- Internet & Digital Services
- Robotics
This breadth of diversification provides SoftBank with multiple recurring revenue streams and contributes to the group’s long-term stability, key attributes for investors assessing creditworthiness.
Example: How Fixed Income Works
A company issues a debt security with the following terms:
Term: 5 years
Coupon: 6.15% p.a., paid semi-annually
Issue Price: $100
Minimum Investment: $10,000 AUD
Investor Scenario: Semi-Annual Payments
Sarah may choose to receive income every 6 months. She receives $3,075 every 6 months (6.15% × $100,000 / 2). Over 5 years, she also receives $30,750 in total income, plus her $100,000 principal at maturity (subject to no credit event or early redemption).
If she sells before maturity, she may receive more or less than $100,000 depending on market conditions
World Economic Calendar
*Data accurate as at 09.04.2026
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