Lenders Digest Podcast - Lowe Speaks & Bond Yields Jump

<p>Welcome to this weeks edition of the lenders digest, by Jonathan Preston</p> <p>Lowe speaks and Bond Yields jumped.</p> <p>This week saw saw bond yields surge in the US, despite the talk that the US federal reserve may pause their interest rate hikes</p> <p>US CDS pricing, which is an indicator of default risk, surged over the last few weeks as debt ceiling talks continue. </p> <p>In the post- silicon valley bank collapse, the federal reserves emergency lending window has opened up approximately another 300 billion for the banks</p> <p>In the Australian lending landscape this week</p> <p><br /> The talk this week is around more lenders joining the space of matching loan assessment rates with long fixed terms, where we can drop the assessment rate buffer altogether. This will potentially help with some refinances. I did also review the new 1% buffer policy from the Westpac group and there are quite a few rules around circumstances not changing, many people will not yet qualify to refinance under these reduced assessment rate offers.</p> <p>Many lenders have now announced they will no longer offer cashbacks going forward, and those remaining in the space are talking about offering lower cashback amounts than before.</p> <p>CBA also announced another out-of-cycle rate hike for new customers, another 10bp following the 10bp recently, this is consistent with them announcing to the market that they are going to increase their net interest margins. This is not a good trend for borrowers.</p> <p>Lowe announced to MPs this week that he had “no tolerance for lingering high inflation and would do what he believed needed to be done to bring it down”, implying it is very possible that we could see more hikes from here.</p> <p><br /> This is despite us being in the steepest hiking cycle in modern history.</p> <p>In property price news </p> <p><br /> Prices continued to surge higher this week, with the RPData daily figures looking very supportive. I believe we are seeing some fatigue around waiting for stock, and with increa