As US and Australian data fades in tandem, the Australian bond bull market has strapped on the afterburners and yields are getting trashed. The two year hit an all-time low of 1.67% last night is now trading at 1.69%. The 5 and 10 years also hit all-time lows and now trading at 1.84% and 2.31% respectively:
The two year has now priced the beginnings a third rate cut. The curve began to flatten anyway as Australia’s long term growth prospects also dive:
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But the spread to US yields widened as its own data soured: