Bonds Collide With Stevens as Rate Bets Rise: Australia Credit
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The Reserve Bank of Australia is showing no signs of raising interest rates at a time when fixed-income markets are signaling the biggest increase in inflation expectations in more than a year.
RBA Governor Glenn Stevens will leave the overnight cash rate target at 4.75 percent tomorrow, with a 52 percent chance he won’t increase borrowing costs until the end of the third quarter, bank bill futures indicate. One-year inflation swaps have risen 57 basis points since December, the most since September 2009.