Australian Dollar Australian interest rates

Bonds yields rip to new lows, Aussie pressure intensifies

Thursday 5 May 2016

The Aussie 2 year hit its lowest in a year this morning at 1.69bs:

Just 5bps above last year’s record lows now and still looking likely. The long end of the curve has steepened sharply since the rate cut but not the shorter end:

That suggest strongly that more rate cuts are coming and before too long.

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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.