After the RBA’s latest cut to official rates, many investors will be tempted to take some of their money out of cash in pursuit of the high dividend yields offered by our banks. But are these yields sustainable as the banks feel the squeeze from margin pressure and increased liquidity requirements? Yesterday, the RBA announced another 25 basis point cut to official overnight interest rates to a new record low of 1.5%. This is likely to further fuel demand for income producing assets such as property and companies with high dividend payout ratios as investors attempt to offset the reduction in income on risk free assets by taking on more risk. View the full article below for my view on the banks.