Aussie bond curve slaughtered

Stocks may be holding up as Australia sinks into an epic double-dip recession but the bond market is anything but calm. The bid is big and persistent:

The curve is being slaughtered:

And we’re outpacing offshore leads with negative spreads to the US across the curve

Though certainly tracking China.

A crushed yield curve should be negative for banks and cyclicals and positive for defensives, duration and yields plays.

Though the rapid fire nature of the COVID recessions will probably be a factor in the equity market looking over the valley.

The currency should also remain under pressure.

Houses and Holes
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