Australian Dollar Australian Economy Australian interest rates

Bonds, not stocks or houses, are pointing to Australia’s future

Thursday, 23 January 2020

And it ain’t pretty. The Aussie bond market boom is back with more 2020 highs (yield lows):

It has steepened a little since last year, but the curve is still inverted out to the five year indicating weak growth at best and high recession risk for years ahead:

In turn, this has spreads falling versus the US again:

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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.