As John Kehoe observes today:
The RBA’s fingerprints are all over the CFR statement, which says “an overly cautious approach by some lenders to incorporating relevant laws and standards into loan approval processes may be affecting lending decisions”.
The result is that the bond market has gotten hosed today as it mulls whether the RBA can bully criminal lending back into existence swiftly (I’ll have more on that tomorrow):
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The move is much greater than elsewhere and is larger than the equity market rally:
It’s put a little bid under the AUD as well:
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Dalian is flat
Big iron is off and running:
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Big Gas not:
Big Gold hosed:
Big Banks are also up on the RBA criminal lending bid:
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And Big Realty:
Nothing like a bit of RBA greasing to turn the wheels.
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