Aussie bonds think Phil Lowe is a pussy

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Aussie interest rate futures have backed up to a terminal rate of 3.8% after this week’s inflation shocker:

This is nearly three more hikes. I think two are a lock despite a clearly slowing economy.

Bond markets are more skeptical. The short end is barely pricing one more and the long end of the curve has zero faith that the RBA will squash inflation, still quite steep and nothing like a deeply inverted US:

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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.