Bond yields crater, but…

Tuesday 2 August 2016

Aussie bond yields just hit record low yields on the two year and five year. The ten year remains marginally above the Brexit low:

Spreads to the US are approaching but not at new lows owing to the buying we’ve seen there in the last week:

Hence the RBA has more work to do to lower the dollar. Should have cut 125%.

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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.