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RBA QE continues to work superbly, now aided by Fed QE infinity. Australian yields have been pounded across the curve:
The curve is still far too steep but it is flattening eveyr day. I expect the 15 year will eventually fall back to 70bps:
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We are still trading at a positive carry to the US but that should also compress ahead:
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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.