Aussie bond yields gap to all-time lows

Monday, 6 May 2019

As markets adjust to new trade deal risk, Aussie bond yields have gapped to new all-time lows this morning:

The short end has now fully priced one rate cut. The curve has steepened in recent times as rate cuts approach but it isn’t convincing:

Negative spreads to the US are printing historic new wides:

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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.