Aussie bank funding costs take off


This is not yet threatening in the sense of triggering out-of-cycle mortgage rate move changes. We’d need to see levels nearer 100bps. But it is on the move:

That said, it does come at a bad time as banks refi the TFF freebie in markets:


JPM has more on the state of hybrids which is where the pressure is coming from after the Credit Suisse bail-in.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.