RBA eats bond market dust

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Australian bonds are on an absolute tear, pricing rate cuts faster than a speeding bullet and heading for record low yields. The two year yield has now fully priced another cut:

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At 1.93%, the five year doesn’t see a hike for half a decade:tvc_6133ed4c93b78dbefce60784daad3247

At 2.33%, the ten year only sees one hike in the next decade and is half-a-bee from an all-time low:tvc_c6b55741fa36bf294eb7effa84582a52

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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.