Bond bulls remain in complete control of the Australian bond market today as moments ago the 2 year yield fell to a new all-time low at 1.73%, beginning to price a third rate cut:
The long end of curve is at its lows as well but so far they have held. As such we’ve seen a little curve steepening:
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The spreads to Treasuries are stable within the big downtrends with the short end still holding up the currency: