Australia 10 year bond yield cracks

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It’s all coming true today. The 10 year bond yield just cracked support at 2.69%:

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It is now in an established downtrend that could take it all the way back to 2.4% and lower. Broader yields are also falling with half a rate cut now priced into the 2 year:

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It’s inevitable now that the RBA will move again, probably this year, as the commodity rout spreads, with iron ore yet to crack, with housing under macroprudential and foreign laws pressure, with the dollar stuck owing to the Fed.

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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.