Bonds have more fun


The Aussie 10-year yield may be forming a head-and-shoulders top:

The Aussie curve is still inverted in the belly suggesting endless per capita recession:


I am bullish on duration in Australia because global forces will pull down yields. I am much less confident on the short end of the curve which is being elevated by persistent Alboflation.

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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.