Australian Dollar Australian interest rates

Dollar bulletproof as bond yields break on data shocker

Tuesday, 1 March 2016

The bond market just broke with yields plunging across the curve after a combination of nasty data punches:

The short end is now pricing more than one rate cut while the long end is in free fall towards all time lows. The curve is still idiotically steep given the outlook thanks to the Fed:

Yet the Aussie dollar barely fell:

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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.