Trump bondcano builds

Sheesh, big gap opens this morning for US bonds and not up!

The USD has torn to new highs as well. On the longer term charts the long end of the bond curve is getting flogged:

That down trend looks like it wants to reverse! Australia is following:

And slopes for both are steepening fast:

Even more in Aussie markets:

Though thankfully the spread is still closing hence pressure on the Aussie dollar:

Again, so long as the delusion that Trump will boost commodity prices holds then the local market can chase the US yield back-up. But when commodity prices break the two markets should dislocate, at least somewhat.

That suggests a great bond buying opportunity ahead.