Australian bond mis-pricing grows

Monday 23 November 2015

The big mover this morning in markets is bond yields. On Friday night the short end of the US curve broke out as markets firm around December Fed action:

And this morning Australian yields are following with the short end under pressure and seriously threatening the recent yield compression downtrend:

The long end has been more stable so both nations are seeing flattening curves. The US slope is coming down fast:

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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.