Aussie bond yields crater as Bernie Fraser attacks ZIRP

Monday 9 May 2016

Aussie bond yields are in free fall hitting record new lows across the curve last night:

And there is more to come. Despite the looming rate cuts, the slope on the 2/5 year hasn’t changed its flattening trend and until it does there is no lift in growth or inflation in prospect:

But it does mean more pressure for the Aussie, now approaching the 0.72 handle.

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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.