Australian Dollar Australian interest rates

Aussie bonds rip to new record highs

Thursday, 18 August 2016

It’s getting monotonous making all of this money for five years now but at the risk of boring you I note that Aussie bonds have ripped to another new high this morning at the short end of the curve with the two year yield pricing half of the next rate cut at 1.4%:

It appears the hot money is chasing a dud jobs report today. Further out the curve, yields are firmer (though my screen is showing -1% yield for the five year and that’s not right, yet!). As such the bond slope has steepened some:

And the spread to the US is tightening fast at the short end:

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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.