Shares drop over 1 per cent at open; US 10-year yield flirts with 4.7 per cent; $A tumbles; Computershare sells US mortgage services business for $1.1 billion. Follow updates here.
The Australian sharemarket tumbled at the open as the rout in the US bond market intensified overnight forging new multidecade highs. The $A declined as the $US rose.
“My opinion is we’re going to have 10-year rates at least at 5 per cent or higher because of this embedded inflation,” Fink said at a forum on Friday. “Following engagement with ASX and an associated determination received by Endeavour on this matter, Endeavour advises that the resolution will be considered by shareholders at its upcoming AGM,” it said in a statement.
That’s compared with an estimated 3 per cent default rate for broadly syndicated loans in the same environment, they said. Now, those loans have been slower to correct for higher interest rates at the same time that companies face sharp declines in their ability to cover their borrowing costs, the analysts said in the note.BlackRock chief executive Larry Fink expects 10-year Treasury yields to top 5 per cent as shifts in geopolitics and supply chains make inflation more persistent.
Added to that is a backdrop of increased US government borrowing to fund budget deficits, Fitch Ratings stripping the US of its top credit grade, and a surge in oil prices that has renewed fears about persistent inflation. “The proceeds from the sale will enhance Computershare’s flexibility to pursue strategic investments and consider further capital management opportunities,” Irving said.The Reserve Bank has lifted interest rates since last year to combat inflation while still trying to engineer a soft economic landing. This is also the first meeting under new governor Michele Bullock.
Tony Osmond’s bankers were asking investors about strategy and where they think the company should be headed. How prescient.The Australian sharemarket tumbled at the open as the rout in the US bond market intensified overnight forging new multidecade highs. The $A declined as the $US rose. “My opinion is we’re going to have 10-year rates at least at 5 per cent or higher because of this embedded inflation,” Fink said at a forum on Friday.
Debate about whether the RBA needs to deliver one more increase rage among market economists, so they will look for any clues about the new governor’s assessment on the economy and rates.
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