Bond bear market ends with a bang

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Barring some new and nasty shock, it appears the bond bear market is over. It has been the steepest sell-off through May since the foundation of Terra Australis:

Aussie bonds were even more dramatic. Most notably after the Ukraine war:

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There was little sense in this. Despite the rip-roaring surge in the Aussie terms of trade, it was never going to trigger an investment surge given so much of the price action was in coal. Moreover, the gas benefits were actually damaging as poor regulatory structure collapsed local energy markets.

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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.