Aussie bond yields rip towards 2022 deflation shock

Wednesday, 13 October 2021

Aussie bond yields have backed up spectacularly in recent weeks. It began with the shift from zero COVID to living with the virus but most of it is the energy crisis that has sent coal and LNG prices to ludicrous levels:

The curve has steepened markedly as well:

Spreads to the US have flipped positive pressuring AUD higher:

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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.