Copied this from the csl thread but I think it should have a positive effect on companies with earnings in usd including rbl.
‘Incidentally, and on an unrelated point, while I believe that one should never invest on the basis of macroeconomic forecasting, I think that there is something most unusual afoot in global bond markets which could give CSL's share price yet another kick along in coming days/weeks.
And that something is that the yield on US Treasuries are now yielding more than Australian government bonds, something that is virtually without precedent.
After a surge in its yield over the past few weeks, the benchmark US 10-Year Treasury is now yielding 2.95%, compared to the Australian 10-Year bond's 2.88%. Usually, the yield on the Australian bond is 150bps to 250bps higher than its US counterpart, so what is happening today is quite a big deal, I think, in an historical context.
Usually, I don't get too excited by movements in macroeconomic variables, but what is happening in US and Australian debt markets is unprecedented, so I think it warrants some comment.
The result of it is likely to be pressure on the A$:US$ exchange rate.
Which, needless to say, would be supportive of CSL's share price.
(With the caveat, of course, that global bonds yields don't keep gapping up too much, because that will spook equity markets once again.)’
RBL Price at posting:
$1.95 Sentiment: Hold Disclosure: Held
