Copy

Yield Matters   

11 December, 2018

XTB Price Sheets

What's in store for bond markets in 2019?

CIO Ian Martin shares his views

A key piece of the puzzle will be put in place when the Federal Reserve meets on 20 December. Despite the Chairman’s recent comments which are interpreted as dovish, I still expect the fourth 0.25% rate hike to occur taking the upper band of the overnight rate to 2.50%.

2019 key expectations

  • US 10-yr bond to reach 3.75%, up 0.75% from current levels
  • At least 2 more rate hikes by Fed to 3% after the expected move in Dec
  • AUD 10-yr will possibly move 50bp higher, but not as high as the US 10-yr 
  • RBA expected to remain on hold during 2019
  • AUD 3-yr continue to trade in a range closely tied to RBA rate.
READ MORE

Infographic: Top 10 economic indicators on bonds

CIO Ian Martin's checklist of economic indicators

What are the key indicators impacting Aussie bonds? Which ones have the most impact on market sentiment and subsequently our investments?

Our infographic highlights the key indicators CIO Ian Martin looks at. It's a handy reference to work out which indicators you should focus on. We also list when they are announced so you can time your investment decisions accordingly.

VIEW INFOGRAPHIC

XTB portfolios now on Sentinel Select

Build bond portfolios with the click of a button 

Sentinel Select is an investment management service which enables financial advisers to allocate and manage client funds across all asset classes, entirely via the stockmarket. The service enables investment management to be more scalable so advisers can take on more clients without compromising their service or adding risk.

XTB portfolios are reviewed monthly, but turnover is very low with bonds designed to be held to maturity so clients know what they are getting from start to finish.

VISIT SENTINEL
Most Popular XTBs in November 
  1. YTMDX2: Dexus 4.25% 11 MAY 2027
  2. YTMQF3: Qantas 7.75% 19 MAY 2022
  3. YTMF09: Macquarie Group BBSW + 1.10% 03 MAR 2020
* By number of XTB units purchased on ASX from 27 Nov to 10 Dec 2018

Upcoming XTB coupons

11 DEC: YTMQF2 - Qantas 7.750% 11 JUN 2021 
19 DEC: YTMNVN - Novion 5.00% 19 DEC 2019
28 DEC: YTMAST - Ausnet Services 5.75% 28 JUN 2022

Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn

 Recent bond transactions 

10 DEC: TR Group to sound investors for potential five - year domestic deal
07 DEC: Deal and ratings review, week ending 7 December 2018 
07 DEC: Liberty prices A$250 million auto ABS deal
07 DEC: Domestic focus smooths Latitude's New Zealand ABS debut
06 DEC: Qudos Mutual prices A$15 million one-year FRN
06 DEC: NWB Bank prices A$75 million July 2028 kangaroo tap

KangaNews has an excellent summary of the latest bond transactions: View here

Contact us

If you have any questions on the content included in Yield Matters or need help with anything regarding XTBs, please contact us on 1800 995 993 or email advisers@xtbs.com.au
Stay in touch by following us on the social platform of your choice
DISCLAIMER: Australian Corporate Bond Company Ltd (ABN 34 169 442 657, Authorised Representative No.: 469037) (“ACBC”) is an Authorised Representative of Theta Asset Management Ltd (ABN 37 071 807 684, AFSL No.: 230920) (“Theta”). Theta is the Responsible Entity of the Australian Corporate Bond Trust (ARSN 603 010 779) and the issuer of the Exchange Traded Bond Units (“XTBs”). ACBC is the Securities Manager of the XTBs. ACBC and Theta will earn fees for making the XTBs available to investors, which is payable at the time that an Authorised Participant applies for an XTB.
 
Email transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, delayed in transmission, incomplete, or may contain viruses.
 
ASX have approved the XTBs for quotation on ASX pursuant to the AQUA Rules. Further a Product Disclosure Statement (“PDS”) dated 6 May 2015 has been lodged with ASIC. Further Classes of XTBs may be made available pursuant to separate PDS, those Classes of XTBs will be made available once they have been approved for quotation by ASX and the relevant PDS has been lodged with ASIC. Investors should read the PDS that relates to that Class of XTB prior to making an investment decision, with or without the assistance of their professional legal, accounting and financial advisers.
 
The information contained in this email is confidential and may not be further disseminated to any person.  The information contained in this email is general in nature and does not take into account any particular investors personal circumstances, objectives or needs. It is not personal financial product advice. It is only made available to wholesale investors within the meaning of section 761G of the Corporations Act (2001).  
 
ACBC is solely responsible for the contents of this email. The contents of a PDS and this email are subject to change and ACBC makes no warranty, express or implied, as to the completeness of any statement contained herein nor does it represent that this email contains all of the information that an investor may require in order to assess the merits of an investment in XTBs.
 
The distribution of this email or any other material relating to XTBs, including a PDS, to persons outside of Australia may be restricted by law and any person who comes into possession of such documents should seek their own advice on, and observe any such restrictions.
 
Data in this email has been sourced from external parties believed to be reliable and has not been verified. Accordingly ACBC and Theta (and each of their directors, officers, consultants and employees) makes no warranty as to the accuracy or validity of any of the statistics quoted. To the extent permitted by law none of these parties are liable for any loss or damage arising from reliance on the content of this material. 

XTB® is a registered trade mark of Global Bond Exchange Pty Ltd, a related body corporate of Australian Corporate Bond Company Limited.

Copyright © 2018 Australian Corporate Bond Company, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.