A new Australian service has launched, offering specialist analysis of their domestic fixed income markets.
It is a subscription service, aimed at both everyday investors and officeholders who need to make informed fixed income investment decisions.
YieldReport is an independent electronic newsletter published weekly and monthly focusing solely on fixed income and yield securities.
The pre-publication versions we have seen promise to be an excellent tool for those officeholders or trustees who are responsible for investing funds on behalf of others.
Often these officeholders are only involved on a part-time basis but are still required to act prudently, professionally and abide by proper governance principles.
This newsletter will assist them in meeting many of their ongoing fiduciary responsibilities.
YieldReport is not just for Australians. It will be useful for Kiwis too as it allows investors to benchmark key interest rates and yields on securities on both sides of the Tasman.
Both countries have the same policy rates at present. The RBNZ OCR is 2.5%, and the RBA's Cash Rate Target is also 2.5%.
However, it is clear from the data below that markets have already priced in expected rate rises by the RBNZ starting in early 2014.
Here are some comparisons as at September 16, 2013.
Bank Bills
| 30 days | 60 days | 90 days | 120 days | 150 days | 180 days | |
| Australia | 2.58 | 2.59 | 2.57 | 2.58 | 2.58 | 2.58 |
| New Zealand | 2.58 | 2.59 | 2.60 | 2.62 | 2.63 | 2.65 |
Swap Rates
| 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs | 7 yrs | 10 yrs | |
| Australia | 2.58 | 2.85 | 3.23 | 3.58 | 3.83 | 4.23 | 4.60 |
| New Zealand | 2.96 | 3.57 | 4.00 | 4.31 | 4.55 | 4.87 | 5.12 |
Term Deposits (best bank)
| 1m | 3m | 6m | 9m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Australia | 3.70 | 4.00 | 4.10 | 4.20 | 4.35 | 4.50 | 4.57 | 5.00 | 5.12 |
| New Zealand | 3.05 | 3.60 | 3.80 | 3.90 | 4.10 | 4.50 | 4.70 | 5.00 | 5.30 |
Government Bonds
| Apr-15 | Dec-17 | Mar-19 | Apr-20 | May-21 | Apr-23 | |
| Aust Govt Bonds | 2.60 | 3.28 | 3.51 | 3.73 | 3.90 | 4.09 |
| NZ Govt Bonds | 3.12 | 4.07 | 4.31 | 4.54 | 4.61 | 4.78 |
The YieldReport service is currently open for a 'free trial'. You can contact them here »
The New Zealand data is as at September 16, 2013. For further details and daily pricing this is available online using the links in the tables above.
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