Australian banksAustralian interest rates

RBA puts a dent in bank funding costs

David Llewellyn-Smith
Tuesday, 17 March 2020
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For a day at least. Yesterday’s RBA emergency announcement dropped the WEstpac CDS price 10% to 98bps:

However, VIX exploded again overnight so let’s not count the chickens. Indeed, I will be very surprised if term debt unthaws for banks any time soon despite QE coming Thursday.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.