Bond markets likely to remain volatile
Tighter credit conditions to continue
Roni Green from GF Asset Management shares his opinion on yield opportunities and bond markets. His view is that the RBA might hold its stance considering the CPI data seems quite muted, despite employment remaining strong. Roni suggests the next action could be in the following month or October, depending on the data patterns.
He places significant importance on the Bank of Japan in the global central banking landscape, especially as it zigs when other banks zag. In relation to the US Treasury, Roni speaks of the overwhelming estimates of the Treasury needed over the next two quarters, exceeding forecasters' expectations. He thinks this may have a considerable impact on the market and could put the demand to a real test.
In his opinion, the overall outcome from these happenings is volatility in the bond market. He also observes an increase in bank lending standards globally, making obtaining finances from banks more challenging. According to him, this indicates how monetary policy grips the real economy, something to watch out for in the future