Subscription service launched offering detailed weekly analysis of Australian fixed income markets

Subscription service launched offering detailed weekly analysis of Australian fixed income markets

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.

Contained within the weekly and monthly publication will be non-specific advice, analysis, news and pricing on cash, term deposits, government and semi-government bonds, corporate bonds, floating rate notes, hybrids as well as other yield instruments available to investors in the Australian market.

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. 

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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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.
 
Unless the part-timers have a habitual investor pedigree they should stand aside.