More record lows for Aussie bond yields

Thursday, 2 April 2015

As US and Australian data fades in tandem, the Australian bond bull market has strapped on the afterburners and yields are getting trashed. The two year hit an all-time low of 1.67% last night is now trading at 1.69%. The 5 and 10 years also hit all-time lows and now trading at 1.84% and 2.31% respectively:

The two year has now priced the beginnings a third rate cut. The curve began to flatten anyway as Australia’s long term growth prospects also dive:

But the spread to US yields widened as its own data soured:

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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.