Are markets forcing rate hikes on Australia?

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That’s what Gotti argues today at Dad’s Army:

Overseas investors hammered the Australian bond market last night sending prices lower and yields higher which will have dramatic ramifications for Australian shares, property, banks, interest rates and the broader Australian economy.

A key driver in the bond sell off is that, as a result of long periods of bad government in Canberra, Australia looks certain to lose its triple-A credit rating.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.