The RBA needs Operation Twist

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Via Bloomie:

While bets on steepening yield curves are growing in popularity, money can also be made in countries that already have one and that’s drawing investors Down Under.

Thanks to Australia’s yield-curve control policy, its bonds have the steepest curve among major sovereign markets, according to two- and 10-year note data compiled by Bloomberg. Investors can exploit that difference by borrowing at lower shorter-term rates and investing higher up the curve.

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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.