Bonds say US recession but Australian superboom!

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A quick update on yield curves this morning. The market hysteria we’ve been tracking year hit new levels on Friday as the Aussie bond curve steepened to forecasting the largest and most inflationary boom of this century”

Meanwhile, the same bond market is bury pricing a forthcoming US recession:

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The difference between the two curves now is the largest in living memory:

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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.