I am not sure you can claim that the risk free rate was "the thing" that made the stock double over the past 6 months. If you look at the 10yr Australian government bond yield vs the stock price, you can see that the risk free rate is at the same level it was back in August last year, well before covid entered the equation.
And as we know, the RBA is spending $100b on purchasing 5yr to 10yr bonds on the secondary market. That will act to keep the risk free rate suppressed at an artificially low level.
That may prove to be a bit of a futile decision by the RBA if the global risk free rate, namely the US 10 year bond yield (orange line below) slowly climbs up off the canvas in FY21. A healthy rebalancing is what the fed is trying to engineer. A gradual slow latent rebalancing of the system that will not spook asset price shocks.
I am not sure you can claim that the risk free rate was "the...
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$38.64 |
Change
0.340(0.89%) |
Mkt cap ! $3.181B | |||
| Open | High | Low | Value | Volume |
| $38.80 | $39.19 | $38.63 | $6.859M | 176.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 257 | $38.64 |
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| Price($) | Vol. | No. |
|---|---|---|
| $38.72 | 311 | 1 |
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| ARB (ASX) Chart |