Aussie bond yields break out, price three rate hikes

Thursday, 19 April 2018

The two year Aussie bond yield has broken out to three year highs today. The five year is trailing a little and the ten isn’t interested:

Not only are we not building in a term premium, the curve is flattening as growth and inflation prospects fade over the medium term:

We are still tracking the US slope:

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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.