MB Radio: Deep T – Global rates, inflation, and Australia’s mortgages

Gunnamatta · Deep T Interest Rates Inflation and Australia 2210

Over a 45 Minute chat Deep T takes us through the relationship between rising US Treasury yields, how this affects global inflationary pressure, and what this implies for Australian mortgages.

The discussion starts with how concerns about significant increases about US debt have driven a generational turn to rising yields, for almost all forms of debt, right as massive AI driven technology spending is driving a massive increase in corporate debt. This is likely to lead to rising costs for capital ahead across the developed world.

For Australia this poses significant risks. With a significant need to refinance global borrowings, both to fund a significant current balance, and a banking sector inordinately exposed to domestic mortgages, Australian mortgagors are increasingly stressed by costs of living, and poor long term prospects for labour remuneration gains, in an economy where their energy and housing costs have surged and there appears to be little political appetite for addressing major structural problems with the economy.

Google AI’s synopsis of the pod and MB analysis