Australian Bond Exchange

ABX Weekly 12th September 2018 Market update

  • The S&P is still flirting with all-time highs as the index has broken above the bullish trendline of a rising wedge suggesting that it is going too far too fast. With no sign of exhaustion, it seems the only way is up…. for now.
  • We have seen good buy flows in CNI 2021, NXT 2021, SYDAIR 2030 with inventory running low due to demand. We also dealt in the newly issued Commerzbank 2028 with interest generated among some of our long-term investors.
  • Investment Grade Corporates continue to borrow at extremely low levels. Today’s example is AMP Bank launching a 3yr bond pricing at 3m BBSW +1.08%, yielding roughly 3.03%

Focus on AUD:

The beleaguered Aussie dipped to a new 21-month low yesterday to just above 0.7150 with resistance piling up above from 0.7235 to 0.7360. The Australian Economic data train continues today with an expected soft GDP reading being forecast for a 0.7% decline against the previous quarters 1% and 2.8% on the year from 3.1% the previous quarter. If so the wavering headline figure could be put down to several reasons including weak metals prices, a lopsided housing market, and global recessionary pressure from trade frictions abroad.

ABX Colour:

As Roger Federer shocked everyone by being eliminated out of the US open shows there is no guarantees in life. Upsets and downturns come without warning and can leave us devastated if not protected. While we can’t help with your tennis game, we can diversify your investments into more safer securities that outperform when the unexpected happen.

Ask your ABX representative how to protect yourself from the unexpected for your investments on
+61 2 8076 9343.

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Have more certainty on your investments hereABX weekly 12/09/2018

ABX weekly market insights


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