ASX, AUD, AGBs break as Berejiklian recession dawns

Thursday 19 August 2021

It’s all going south Downunder now. As the reality of COVID apartheid and crashing commodity prices dawns on markets, everything is on the move. Bonds are bid and yields breaking down:

The curve is being slain. It’s far too steep still:

Spreads to the US are widening slowly:

Driving the AUD down:

ASX is toppy:

As big miners are slaughtered:

Banks aren’t looking too good, either:

The Berejiklian recession is at hand.

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.