State treasurer of Queensland comments on budget
In an exclusive interview with KangaNews following the release of the Queensland budget on June 4, Tim Nicholls, treasurer of Queensland, says tackling revenue undershoots has been a key part of the government's budgetary process. He emphasises the state's commitment to controlling expenses and acknowledges that further debt reduction is needed in order to regain a triple-A rating.
Reserve managers still favour Australian dollars, IMF survey finds
The International Monetary Fund (IMF) recently published the results of a survey of the currency allocation plans of a swathe of global reserve managers. The results make happy reading for Australian dollar borrowers, indicating that the currency remains close to the top of the list of reallocation targets as reserve managers continue to seek additional diversification.
NZDMO funding requirement eases after "investor friendly" budget
An improving budgetary position in New Zealand – including a reaffirmed projection of a return to surplus in 2014/15, ahead of Australia's latest projections – allowed the New Zealand Debt Management Office (NZDMO) to lower its funding requirement for the next two financial years. Analysts suggest the NZDMO's funding strategy could significantly reduce nominal tender supply in the coming year.
Redemptions and tightening spreads cause SSA Kangaroo flurry
Kangaroo market participants ascribe the recent flurry of supranational, sovereign and agency (SSA) Kangaroo issuance to a global tightening of spreads and rolling interest in maturities. While a tapering off of issuance during the European summer is expected, most market participants believe fundamentals remain sound – despite the recent precipitous decline in the value of the Australian dollar.
Budget does not surprise, but structural concerns grow [UPDATED]
Analyst and rating agency response to Australia's federal budget is broadly supportive given the context of significantly weaker revenues and the consequent prolonged period of deficit. However, some economists believe little has been done to address structural weaknesses, especially on the revenue side, which further reduce the chances of a balanced budget position on average across the economic cycle.