Bonds rally sharply as Fed approaches

Monday 27 July 2015

Bonds rallied across the curve last night as falling oil kicked the stuffing out of inflation expectations. The Aussie 2 year rallied to within a whisker of 1.8% yield and finished at 1.83%, threatening breakdown:

Aussie yields rallied moderately across the curve but mostly at the long end as Fed hikes come under pressure:

As such the Australian curve is starting to flatten though it remains stupidly steep for the outlook:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.