Aussie bonds approach breakdown (of sanity)

Monday, 7 December 2015

The Australian bond market is still selling today in the face of the absolute obvious, that the terms of trade crash and housing slowdown will force the RBA to cut again next year. The 2 year yield is at 2.12% and closing in on a breakdown:

The entire curve is selling though the long end has more room before breakdown:

Yields are being dragged up by the FOMC tightening:

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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.