Economic data released last week continued the trend of being better than expected, raising expectations that central banks around the globe will look to normalise monetary policy going forward – and the Bank of Canada was the first to move this year with a 25 basis point rate hike.
Equity markets have continued their stellar start to the New Year albeit with a brief pullback in the middle of the week, the US share market pushing to a new record high. Of note has been the move in long term yields which continued to drift higher on a daily basis at the moment, a trend which started in early December. The futures market has now moved toward pricing in 30 basis points of tightening over the next 12 months.
Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank - A Division of Bendigo and Adelaid Bank ABN 11 068 049 178 AFSL/Australian Credit Licence 237879.