Real interest rates seem to be moving higher. I believe that is a significant headwind for the metals complex as (having no carry) they are very sensitive to that.
The Bond rally of the last many months seems to have run its course as I believe the market will treat European QE as inflationary. US QE will be over in a month. IMHO it is not a coincidence that the recent sell off in fixed income has put the equity market under pressure this week.
If...and thats a big if...we start to see credit spreads come under some pressure I think the banks in Aus are a stand out short. Don't want to pre empt it but very happy to go with it. Watch the Aussie 10 year...that has provided the anchor for the yield trade IMO.
I don't post here ften as I dont think I have all that much to say but I appreciate the regular contributors contributions and hopefully i have something that makes sense from time to time
Real interest rates seem to be moving higher. I believe that is...
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Last
7,829.7 |
Change
66.500(0.86%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 7,763.2 | 7,832.3 | 7,763.2 |
| XJO (ASX) Chart |