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The two year bond just roared on the weak CPI breaking out of its recent trading range and fully pricing the next rate cut at 1.75%:
The long end remains stubbornly high with neither the five nor 10 year budging much:
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That still has the slope farcically steep given what’s coming down the pipeline viz growth:
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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.
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