Aussie bonds are on a tear again after yesterday’s CPI shocker with short end yields belted 23 bps in 24 hours though still at 1.87% versus a 2% cash rate which captures some doubt about an RBA move, let alone more than one:
As one would expect with still rising US rates, the long end has dragged the chain so what has been a fast flattening and bearish curve has suddenly steepened:
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US bond yields eased back on the Fed’s balanced statement last night but the short end remains in a solid uptrend:
