RBA loses control of bond market panic merchants

Thursday, 28 October 2021

Yesterday’s Aussie bond action was borderline hysterical as the belly of the course threatens to jackknife into inversion with the long and the RBA’s yield curve control has been obliterated:

The US curve was also crushed though its long-end was bid impressively:

Spreads to the US blew out at the longer end putting upwards pressure on the AUD:

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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.