Australian Dollar Australian interest rates

Australian dollar craters with yield spreads

David Llewellyn-Smith

Thursday, 15 December 2016

The Fed has unleashed global bond carnage this morning as yields move to reprice rate hikes. US yields have rocketed:

And the longer terms chart:

Clearly the short end is pricing to the Fed’s three hikes for next year. But the long end is trailing so the slope is stable and is not exactly forecasting a boom:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.