The BOE cut rates as expected, albeit just, last week with the RBA set to follow suit tomorrow. Markets expect the RBA to ease in September & October. Unless Michele Bullock is particularly hawkish tomorrow credit markets will remain positioned for another two rate cuts into early 2026.
- We can see the local 3’s trading between 3% and 3.5% into Christmas; the lower they move, the more supportive it is for rate-sensitive stocks.
MM is cautiously bullish towards the Australian 3s (yields lower)
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