Australian Bond Exchange Weekly Update
13 May 2026
Market Insights
- A new 7.90% p.a. A$ Credit-Linked Note over Unisys Corp. has been launched allocations are limited
- US unemployment steady at 4.3%
- China Producer Price Index surges to four-year highs
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Key Points:
- Australia: The RBA increased cash rates by 0.25% to 4.35% p.a. at its April meeting. March CPI increased to 4.10% p.a., and the Trimmed Mean increased to 3.50% p.a.
- United States: The Federal Reserve left the federal funds rate unchanged at 3.50%–3.75% p.a. at its April 2026 meeting. The latest U.S. CPI inflation rate is at 3.3% p.a. as of March 2026. Core CPI was more contained at 2.6% p.a.
- United Kingdom:The Bank of England held Bank Rate steady at 3.75% p.a., and CPI for March increased to 3.3% p.a., up from 3.0% in February.
- 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 to 2.6% p.a. in March, up from 1.9% in February.
| Region | Policy Rate | Latest Inflation (YoY) |
|---|---|---|
| Australia | RBA Cash Rate 4.35% p.a. | 4.1% p.a. to March 2026 |
| United States | Fed Funds 3.50–3.75% p.a. | 3.3% p.a. to March 2026 |
| United Kingdom | Bank Rate: 3.75% p.a. | 3.3% p.a. to March 2026 |
| Eurozone | Deposit Facility Rate: 2.00% p.a. | 2.6% p.a. to March 2026 |
US Unemployment Steady at 4.3%
US jobless claims remained low and the labour market continued to show resilience, with employers adding more jobs than expected for a second straight month and unemployment holding near 4.3%. The steady employment backdrop gives the Federal Reserve room to keep interest rates unchanged, reinforcing views that the economy remains stable despite inflation pressures and geopolitical risks linked to the Iran conflict. Last week, Fed Chair Jerome Powell said the job market has shown “more signs of stability”. However, consumer sentiment painted a weaker picture, with the University of Michigan survey falling to record lows as households grew increasingly concerned about inflation and the impact of rising prices on personal finances.
China Producer Price Index Surges to Four-Year Highs
China’s producer price index (PPI) rose 2.8% year-on-year in April 2026, sharply above expectations and marking the strongest factory-gate inflation reading in nearly four years. The surge was driven mainly by higher energy and commodity prices, with notable gains in mining, oil and gas, and non-ferrous metals. The data signals that China’s long period of industrial deflation may be ending, although weak domestic demand and subdued consumer inflation continue to limit broader pricing power in the economy.
Why does this matter: Rising Chinese factory costs could eventually flow through to higher global goods prices, adding to broader inflation pressures worldwide.
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New Fixed Income Opportunity: A$ 7.90% p.a.
Unisys Corp. Credit-Linked Note
A new 7.90% p.a. A$ fixed income offering from Unisys Corp. is now open to
eligible retail and wholesale investors. This product pays semi-annual coupons and offers exposure to a global IT services provider.
About Unisys Corp.
The Unisys Credit-Linked Note provides investors with exposure to the credit of Unisys Corporation, a global IT services provider with a broad base of recurring contracts across government and enterprise clients worldwide. Unisys operates a managed services model, generating stable and predictable revenue through multi-year engagements spanning both public and private sectors. The company generates approximately ~$2B in annual revenue, with the government sector representing a significant and stable portion of its business. The majority of this revenue is derived from U.S. federal agencies and international governments, supported by long-term contracts in areas such as border security, digital government services, and IT outsourcing. Hundreds of active contracts globally reduce client concentration risk.
Investment Overview:
| Issuer: | C2 Specialist Investment Pty Ltd (ACN 622 433 043) |
| Product: | Unisys Corporation – Credit Linked Security |
| Type: | Fixed Income Investment |
| Target Coupon: | 7.9% p.a. paid, Semi-Annually |
| Term: | 20/06/2031 |
| Currency: | AUD |
| Min. Investment: | $10,000 |
| Eligibility: | Retail and Wholesale Investors |
Example: How Fixed Income Works
A company issues a debt security with the following terms:
- Term: 5 years
- Coupon: 7.9% 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 $3,950.00 every 6 months (7.90% × $100,000 / 2). Over 5 years, she receives $39,500.00 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.
- Capital invested in the Units is at risk: There is no capital protection or guarantee of financial return in respect of your investment in the Units.
- Credit exposure to Reference Entity: The Units will reference the credit of the Reference Entity, therefore the Units include a risk of capital loss in part or in whole, as the result of Credit Event(s) occurring with respect to the Reference Entity.
- Credit Rating: Investors should be aware that credit ratings do not constitute a guarantee of the quality of the Units or the Reference Entity.
- Secondary Offer Period: Investors who purchase Units in the Secondary Offer Period at an Issue Price greater than the Initial Issue Price of $100.00 will receive a lower overall return, as the Final Value and Coupons are calculated with respect to the Initial Issue Price of $100.00 per Unit.
- Performance of the Reference Entity: Historical performance of the Reference Entity should not be taken as an indication of the future performance of the Reference Entity during the Investment Term.
- Value of the Units before the Maturity Date: The Final Value of the Units is calculated by reference to the Reference Entity and its overall creditworthiness between the First Credit Event Occurrence Date to the Scheduled Last Credit Event Occurrence Date. The market value of the Units before the Maturity Date will be determined by many factors and may be less that what you paid for the Units.
- Liquidity risk: You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy- Back requests are determined in the Issuer’s discretion.
- Early Maturity: The Units may mature early following an Early Maturity Event, including as a result of an Adjustment Event or Market Disruption Event or if a Credit Event or a Compulsory Early Redemption occurs or if your request for an Issuer Buy-Back is accepted.
- Indirect Investment Risk: Compared to a direct investment (including bonds) in the Reference Entity, the investor will not be entitled to receive dividend or other payments (if any) nor have any voting rights for corporate actions to do with the Reference Entity, including if a Credit Event occurs.
- Counterparty Risk: Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty.
For a full explanation of Key Risks please refer to the Term Sheet PDS. Investors should also refer to Section 2 “Risks” of the Master PDS.
An investment in the Units is not equivalent to an investment in the bonds of the Reference Entity.
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*Data accurate as at 13.05.2026
Disclaimer: This webpage has been prepared by Australian Bond Exchange Pty Ltd ACN 605 038 935 AFSL 484453 (ABE). The information contained in it is of a general nature only. It was prepared without considering your financial needs, circumstances and objectives. Before investing in this security, you should consider whether it is appropriate for your circumstances and review the Master PDS and PDS. This website may contain links to other third-party websites, some of which require a subscription to read. Such links are for your convenience only, and ABE does not recommend or endorse these third-party sites. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. Past performance is not an indication of future performance. To the maximum extent permitted by law ABE disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything on this webpage.