Bond bears back into hibernation

Sunday 21 June 2015

The global bond widow-maker trade which has sucked in Chris Joye and Robert Gottleibsen locally rolled on again Friday with a powerful bid returning to bond markets. Australian yields fell sharply across the curve and the trend lower appears thoroughly intact:

The trend is US yields pulled back with a frightened Fed:

And US/Australian bond spreads are still very convincingly locked into a falling trend:

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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.