Bonds shatter records, price second rate cut

Sunday 31 July 2016

What a bull market it is. Australian bonds tore up new highs across the curve Friday night as weak US growth scared the markets into safe havens. The Aussie two year yield began pricing a second rate cut falling to 1.46%, the five year yield hit 1.5% and the ten year yield an all-time low of 1.83%:

US yields were bid across the curve with the long end again threatening record lows::

Japanese yields have blown out a little since the BOJ squibbed it, if you can see it:

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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.