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RBA get out of the way! As global bond yields kept plunging, with the German 10 year breaking below zero for the first time ever, Australian bond yields galloped to new lows at the long end with the five year at 1.68% and the ten year at 2.07%:
Moreover, that was after the ten year ripped all the way to 2%, then the evening calmed down as Wall St caught equities bid. But why would that so long as Brexit hangs over the market?
The Australian bond curve flattened again at the close now just 4bps from inversion on 2/5:
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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.
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