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Cash Rates, Cash Management Accounts
early birds
post Posted: Jul 1 2019, 09:26 AM
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https://www.bloomberg.com/news/articles/201...w-yield-reality

Yields on the nation’s 10-year government bonds hit an all-time low 1.26% last week

For a country that avoided the worst of the turmoil that followed the global financial crisis and the unprecedented quantitative easing by central banks from the U.S., Japan and Europe, Australia is now having to contend with a possible future inside that club. The speed of the market’s change has raised eyebrows.



“On the screen a minute ago, Aussie 10-year bond yields at 1.33? I mean, is that a typo?” Richard Yetsenga, chief economist at Australia & New Zealand Banking Group Ltd. in Sydney, quipped in a recent Bloomberg TV interview. “Even six months ago they were like 100 points higher.”

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typo????? lmaosmiley.gif it is a fashion that RBA followed other major central bank really late stage ...i'm afraid it might face out vary soon!!

 
early birds
post Posted: Jun 26 2019, 10:08 AM
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https://www.cnbc.com/2019/06/25/feds-powell...-interests.html

he emphasized that politics won’t be a consideration as the Fed is “grappling” with the idea of a rate cut.

“The Fed is insulated from short-term political pressures — what is often referred to as our ‘independence,’” Powell said in prepared remarks. “Congress chose to insulate the Fed this way because it had seen the damage that often arises when policy bends to short-term political interests. Central banks in major democracies around the world have similar independence.”

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lmaosmiley.gif
seems Fed's rate cut isn't that certain now for the markets eh??

 
early birds
post Posted: Jun 21 2019, 10:51 AM
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https://www.marketwatch.com/story/stocks-ar...w_theo_homepage

We’re at 3.6% unemployment with a 105% debt-to-GDP ratio, and the Fed is signaling three rate cuts. The track record is clear: It’s not good news for the economy and ultimately not good news for stocks either.



Cutting rates again is making wealth inequality even greater, is again punishing savers, is again pushing wealth toward asset-class holders and again encouraging more debt accumulation. In short: Make the bubble even bigger.

Let’s do it all again, except it’s different this time. It’s worse. Much, much worse.

But no central banker will ever admit it.


At least for now. Central banks have once again set in motion an environment where all asset classes are inflating. Stocks, bonds, gold, crypto — you name it. Everything is appreciating. Growth may be slow, but assets are flying higher. Asset inflation without growth. We are the Federal Reserve. Always wrong about growth and inflation, but always easy on the money front.

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lmaosmiley.gif i do agree with this analysis and logic, but not so sure about selling everything now. seems mama bear come out from woods again!! lmaosmiley.gif


Said 'Thanks' for this post: nipper  
 
early birds
post Posted: Jun 20 2019, 10:42 AM
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https://www.cnbc.com/2019/06/19/fed-decisio...-unchanged.html

A divided Federal Reserve held the line on interest rates Wednesday and indicated formally that no cuts are coming in 2019. The decision came amid divisions over what is ahead and still leaves open the possibility that policy loosening could happen before the end of the year depending on how conditions unfold.

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no cut , but jaw boning wink.gif



 
nipper
post Posted: Jun 19 2019, 12:23 PM
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QUOTE
ING hasn’t been immune to the Reserve Bank’s interest rate cut that saw the official cash rate drop to a historical low of 1.25 per cent.

Following the rate cut, ING has announced it has dropped the maximum interest rate of its Savings Maximiser account by 25 basis points, from 2.8 per cent to 2.55 per cent.

The base rate, also known as standard variable rate, is officially 0.75 per cent, while the bonus interest rate is 1.80 per cent.

But to clinch the bonus interest rate, you’ll have to have an Orange Everyday bank account linked, deposit $1,000 or more every month, make five or more purchases with their linked account every month, and not exceed $100,000 in your account balance.
- quite a few hoops to jump through, otherwise you're just a source of cheap money for this intermediary



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
early birds
post Posted: Jan 30 2018, 08:59 AM
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global bond sell off accelerated overnight Monday - driving more confusion about the sustainability of the great Wall Street stockmarket boom.

Wall Street sold off - the Dow, S&P 500 and Nasdaq all falling on Monday. Overnight trading on the ASX 200 saw a 28 point fall, so the 25point rise from yesterday looks like being reversed.

The US dollar was mixed - it lost ground slightly against the Aussie which traded around 80.90 US cents this morning. Gold fell 0.8% to $US1,340.70 in New York in early Asian dealings, while US oil prices sold off as well, down a few cents to around $US63 a barrel.

The yield on the key 10 year US Treasury bond hit a four year high above 2.7% before settling around 2.69% in US markets.

The sell off started in Europe and continued into the US/ German bond yields also rose as the sell off reached into non-US securities.

The yield on Germany’s five-year government bonds turned positive for the first time since late 2015, reaching 0.0013% on Monday morning in Europe. Yields on these bonds fell below zero at the start of 2015 and have not closed above zero since November 2015.

The shift carried through into longer-dated debt as well, with the 10-year German yield reaching 0.693%, its highest level since late 2015.

Yields on the 10-year UK bond hit 1.467% on Monday, its highest level for a year. They ended at 1.455%.

The US Federal Reserve starts its first meeting of the year tonight our time. It is not expected to lift rates because it is Janet Powell’s last meeting as chair. Jerome Powell replaces her at the end of this week.

Rising bond yields make borrowing more expensive, potentially straining some companies that have been relying on cheap money to grow.

The Financial Times reported that “The FTSE All-World index fell by 0.5 per cent on Monday, its worst performance since mid-November, and Goldman Sachs’ chief global equity strategist Peter Oppenheimer warned in a note that “a correction is becoming increasingly likely”, exacerbating concerns that a reversal is overdue.

“It all feels a little bit euphoric,” said Larry Hatheway, chief economist at GAM, the investment group. “It has led to a lot of people thinking that we should prepare the groundwork for some risk mitigation strategies. This can’t go on for ever,” the FT reported.
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start something that we've been waiting for??? or just a blip? i notice that flattened yield curve for some time by now!! unsure.gif

 


joku
post Posted: Jun 30 2008, 12:23 AM
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QUOTE (SK4ME @ Sunday 29/06/08 10:57pm)

The new Comsec cash management account is attractive because, unlike the CDIA account, it allows a high interest account to be attached. To get a high interest account (netbank saver) with the CDIA account you need to get some type of everyday account as well (ie an account that charges fees). If you don't mind paying bank fees, none of this is relevant.

For most people CDIA vs Comsec Cash Management is a trade off between high interest and general features/convenience. For people like me, who use CDIA as their main/only account, we can't really afford to lose the features/convenience.

So the other option is to keep your CDIA and attach an ING savings maximiser (thanks 29101971 for confirming). This is a fee free setup, with high interest rate account, and all the features/convenience of the CDIA account. The drawback of this setup is that moving money between CDIA and ING takes a day, whereas the comsec and cba versions are instant. Probably not a problem for most given T+3 trades.

 
SK4ME
post Posted: Jun 29 2008, 10:57 PM
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In reply to: joku on Sunday 29/06/08 09:15pm

Not quite following you, I would have thought a Netbanksaver account would be linked to your other accounts and visible on the web via Netbank? Perhaps not accessable through an ATM though - I'm not sure? What exactly do you mean by attached to your CDIA?

 
29101971
post Posted: Jun 29 2008, 09:41 PM
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In reply to: joku on Sunday 29/06/08 09:15pm

Yes, you can attach an ING Business Optimiser account to your CDIA account. I have had this arrangement for my SMSF since September 2005. Had no problems.



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Everything will be okay in the end. If it's not okay, it's not the end.
 
joku
post Posted: Jun 29 2008, 09:15 PM
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I'm also keeping CDIA for reasons already stated, its my main bank account.

I'm curious about those who have also mentioned CDIA is their main account, how do you deal with excess cash? I tried to get a Netbank saver account attached to CDIA account but they said it wasn't allowed. I've been planning on getting an ING savings maximizer attached, has anyone done this? I don't see any reason why this wouldn't work but I doubt CBA would be too impressed either.






 
 


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