Australia bond curve flattens as long end craters

Thursday 9 June 2016

It’s awwwn in bonds. While the short end of the Australian curve is holding up, the long end just cratered to another all-time low at 2.136% after today’s regional central bank action:

Thus the Australian curve is flattening fast suggesting a worsening growth outlook:

That sure does not look a bond market that reckons the RBA is done!

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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.