Australian DollarAustralian interest rates

Australian/US bond spread break augurs Battler weakness

David Llewellyn-Smith
Thursday, 5 November 2015
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The December Yellen has finally broken down the short end of curve for Australian/US bond spreads. Aussie bonds have been sold in recent days following the RBA meet (for no apparent reason given they installed a more explicit easing bias):

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But US yields have been rising more:

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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.