Mixed emotions when I have to extend the scale on the rhs of one of my regular charts, but just had to do it today. AU-US 2yr swap spread negative for first time in 16yrs and I suspect I may to have to extend rhs axis again mid next year?
The axis will run deep! Next up for inversion, straight yields, the spread on which fell to just 2bps last night.
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.
