The Aussie bond curve is starting to price in the RBA policy error. Short-end yields are soaring while long-end have stalled out:
The curve has been flattened by a steamroller and the belly is almost inverted:
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Spread to the US are still trending wider offering some support to the AUD:
If Albo’s cowards add energy subsidies today then I’d expect the short-end to blow out some more but hopefully the long-end is near done.
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I still think adding to long-end holdings as they sell is the play.
Recession risks are still getting worse in the US and just got much worse in Australia.