Just recevied the NAB Australian Markets Weekly.
“Interest Rate Strategy; Bond yields in Australia and globally have fallen a long way in recent times, a move entirely due to economies having hit soft patches through the 1st half of 2011. Yields may fall even further in the near term given this soft patch in data is likely to continue. Meanwhile the chances of the RBA hiking next week have diminished. That said, we’d emphasis that 1) this growth slowdown will be temporary as it relates to weather in Australia; 2) the RBA is still likely to hike ahead; and 3) from a long term perspective, bond yields are already much too low against our forecast”
Email me if you’d like a copy of entire report