Aussie bonds yields join the bearish curve flattening

Tuesday, 24 July 2018

Global bonds had torrid night last night after the Japanese central bank egged on higher yields at the long end of the curve. The result was a steepening yield curve for many markets but not so Australia:

Here the bond curve has flattened some more as growth and inflation prospects wane:

We are well off the steeps of the Botox Boom now and there is little reason to expect anything but more of the same as the US flattens:

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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.