Bonds rallied across the curve last night as falling oil kicked the stuffing out of inflation expectations. The Aussie 2 year rallied to within a whisker of 1.8% yield and finished at 1.83%, threatening breakdown:
Aussie yields rallied moderately across the curve but mostly at the long end as Fed hikes come under pressure:
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As such the Australian curve is starting to flatten though it remains stupidly steep for the outlook: