Hysteria overtakes bond markets

David Llewellyn-Smith

Wednesday 18 March 2020

Bond markets. Whoa! Last night Treasury yields jack-knifed again:

Why is not clear. There was rumour and scuttlebutt around Trump’s $1tr simulus. But inflation breakevens are crashing:

So the Treasury sell makes little sense in terms of a punt on a v-shaped recovery and/or fiscally induced inflation.

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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.