Bond yields break as Trump worries escalate

Monday, 27 March 2017

A big move this morning at the open for bond yields with the two year breaking to new lows on its Trumpflation retracement:

The curve remains stupidly steep for actual growth and inflation prospects:

But the spread to the US has contracted to just 47bps on the two year and 31bps on the five year, both the narrowest since 2001:

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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.