Anthony Doyle
Chart of the week | Oil and breakevens
Whilst last year’s favourite word amongst investors was “unprecedented”, this year “reflation” appears to be the word on everyone’s lips. For central bankers and investors, breakeven rates are an important measure of inflation expectations. Simply put, the breakeven rate is the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity.
Emerging markets and the reopening trade
So far, the global economic recovery from the Covid-19 fallout has been led by developed markets and emerging Asia, spearheaded by China. Looking ahead, we think the catchup trade could ripple out across other emerging markets, driven by the availability of vaccines, the reflationary impulse from China and developed markets, and the lagged impact of monetary easing.
A new year, a new RBA announcement
The first RBA meeting of 2021 kicked off this week with one big surprise - further easing measures to the tune of $100 billion worth of government bonds. What does this mean for investors, and what headwinds can we expect? Find out with Anthony Doyle in the first episode of the Doyle Download for 2021.
A tighter relationship between US and Australian equities?
As a small open economy, monetary policy decisions made in other parts of the world matter for Australia, particularly those of the US given their importance in global capital markets. So what can we expect in 2021 and just how will we be effected?
Bond markets power ahead
Australian government bond yields have collapsed in 2020, fuelled by the Reserve Bank of Australia’s unprecedented intervention in the market via yield curve control and quantitative easing. The question for Australian government bond investors now is how low will yields go?
