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"RBA governor Philip Lowe is challenging market expectations for interest rate increases before 2024. John Likos from Bond Advisor says the reason bond markets are pricing in a rate rise before then is because they don't believe him. He says there an expectation that the economy will be stronger sooner than the RBA is forecasting. And John says there is also some bemusement that the RBA governor is pushing back against suggestions that rate rises and tougher lending standards can be used to quell rocketing house prices. \r\nWhile extended lockdowns are confusing Australian economic forecasts, John says the economic picture in the US is also far from clear. U.S. government-bond yields fell after data showed consumer prices cooled in August, easing investors’ worries about runaway inflation. Despite this John says this hasn't changed his view on rising inflation and therefore portfolio positioning. Meanwhile. on the corporate front, John says companies are scooping money out of a bond market awash with liquidity at a startling pace. He says this is either a happy reflection of an unusually well-functioning market or perhaps a cause for concern.\r\n"
<https://www.ausbiz.com.au/media/Yields-indicate-the-bond-market-doesn't-believe-the-RBA's-narrative?videoId=14797>