What a night on bond markets

Monday, 2 March 2020

It’s worth revisiting. All last week pointed to the bizarre pricing of rate cut odds in Australia and the strange calm in bond markets. Friday night both came apart in spectacular fashion:

All yields are at record lows:

The curve is inverted past the ten year, screaming at the RBA to slash rates:

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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.