What happened to the so-called “Bondcano”, the notion that Aussie bond yields were going to explode, laying waste to every thing their path.
It’s was always fanciful in our view so we’ve been long the long end of Aussie bonds all year. The Bondcano is looking a complete bust this afternoon as the bid in Aussie bonds intensifies on bank mortgage rate hikes:
That’s put a plug in the ‘cano and a Godzilla sized steamroller is flattening the entire mountain with the term premium disappearing fast:
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