Bonds boom as RBA breaks

The Aussie dollar is still falling after the RBA buckled today:

Bonds are booming and breaking out:

XJO is enjoying the lower dollar:

Big Iron is running. This is the monthly chart. I’m wondering now if RIO won’t charge a record high before the crash:

Big Gas is down on the US inventory build:

Big Gold is trading the metal not AUD today:

Big Banks have flamed out already after the CBA dud:

Big Realty got nuthin’ from the RBA roll over:

Next question: will rate cuts even help house prices? I have my doubts.

David Llewellyn-Smith is chief strategist at the MB Fund and MB Super which is long international equities and local bonds that will benefit from a weakening Australian economy and dollar.

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