Australian Bond Exchange Weekly Update
29 May 2026
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Market Insights
- Australian April CPI Comes in Softer Than Expected
- Leading Index Signals Slowing Momentum
- Brent Crude Has Retreated Sharply from Recent Highs
- Additional Tranche Opens for Unisys Corp. 7.90% p.a. CLN
Key Points:
- Australia: The RBA increased cash rates by 0.25% to 4.35% p.a. at its May meeting. April CPI eased to 4.20% p.a., while Trimmed Mean rose to 3.40% 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 3.8% p.a. as of April 2026. Core CPI was more contained at 2.8% p.a.
- United Kingdom:The Bank of England held Bank Rate steady at 3.75% p.a., and CPI for April was 2.8% p.a., with Core CPI slowing to 2.5% 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 to 3.0% p.a. in April, up from 2.6% in March.
| Region | Policy Rate | Latest Inflation (YoY) |
|---|---|---|
| Australia | RBA Cash Rate 4.35% p.a. | 4.2% p.a. to April 2026 |
| United States | Fed Funds 3.50–3.75% p.a. | 3.8% p.a. to April 2026 |
| United Kingdom | Bank Rate: 3.75% p.a. | 2.8% p.a. to April 2026 |
| Eurozone | Deposit Facility Rate: 2.00% p.a. | 3.0% p.a. in April 2026 |
Australian April CPI Comes in Softer Than Expected
Australia’s annual CPI inflation eased in April, with the CPI rising 4.2% over the year, down from 4.6% in March. On a monthly basis, CPI rose 0.4%.
Fuel prices were a key contributor to the monthly result. Automotive fuel prices fell 7.0% in April, following a sharp rise in March, although diesel prices increased over the month.
Underlying inflation remains an important measure to watch. Trimmed mean inflation rose to 3.4% over the year to April, up from 3.3% in March.
Overall, the April CPI data points to some easing in headline inflation, while underlying price pressures remain above the RBA’s target band.
Westpac – Melbourne Institute Leading Index showing loss of momentum
The Westpac–Melbourne Institute Leading Index pointed to softer economic momentum in April, with the six-month annualised growth rate easing to -0.17%.
Westpac noted that the index has moved from above-trend growth late last year to a below-trend reading, with weaker consumer sentiment a key contributor. The Westpac–Melbourne Institute Consumer Expectations Index has also fallen from its late-2025 highs.
Recent domestic indicators, including consumer sentiment, business surveys and household spending data, continue to be watched closely by markets for signs of how higher rates and cost-of-living pressures are affecting economic activity.
Market pricing ahead of the June RBA meeting has reflected expectations for the cash rate to remain on hold, although future policy decisions will remain dependent on incoming inflation, labour market and growth data.
Brent Crude Has Retreated Sharply from Recent Highs
Brent crude has retreated from recent highs as markets assess the possibility of a diplomatic agreement between the U.S. and Iran and the potential implications for global energy supply flows.
Lower oil prices may help improve the broader inflation outlook over time, particularly if the decline is sustained. This could help reduce global inflation pressures, support consumer sentiment and add to expectations that central banks, including the RBA, may be closer to the end of their tightening cycles.
However, markets remain highly sensitive to developments in the region, and any setback in negotiations could quickly reverse the recent decline in oil prices.
Strong Investor Demand Drives Additional Tranche of Unisys Corp. 7.90% p.a. Fixed Income Credit-Linked Note
Following significant investor demand, we are now building a book for an additional tranche of the A$ Unisys Corp. Fixed Income Credit-Linked Note, offering a 7.90% p.a. coupon paid semi-annually.
The note is available to eligible retail and wholesale investors and provides exposure linked to Unisys Corp., a global IT services provider.
Investors should review the relevant offer documents, including the key risks, eligibility criteria and product terms, before investing.
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A$ Unisys Corp. 7.90% p.a. Fixed Income Credit-Linked Note
Our new 7.90% p.a. A$ fixed income offering from Unisys Corp. which is eligible for retail and wholesale investors is closing soon. 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.
Want to learn more or express your interest below
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World Economic Calendar
*Data accurate as at 29.05.2026
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