Banks: The substantial weight in the index and the high yield premium has made the bank sector to trade in line with the currency and the economy. Central banks globally continue to maintain an easing bias through currency war. US Fed decision next week will be the dominant factor in determining the trend for the financial sector. We expect US Fed to remain dovish and push up AUDUSD and the bank sector. Banks could get rerated higher post May update season by delivering more clarity on bad debt and payout worries. Property Trusts: Property Trusts remains the highest risk segment of the financials as it is trading at a premium to long term fair value with declining ROE. The flattening yield outlook and recent outperformance supports moving funds from property to banks. The continued government policy support to infrastructure/housing construction will deliver better growth for LLC despite the sector outlook. (VIEW LINK)