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Positioning for US rate hikes

Monday 9 November 2015

Now that the robust US jobs report has reset expectations for a US tightening cycle, let’s explore where this is going. First off, US bonds markets took a hiding with the two year yield breaking out big:

The long end of the curve also sold heavily but is more contained:

Australian bonds followed suit almost entirely pricing out any more rate cuts:

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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.