Friday, 30 August 2019

Yield curve

Near inversion

The extraordinary shift in Australian government bond yields over the past six months, charted.


As you can see in the chart above the 10-year bond yield now sits well under 1 per cent.

Policy has been too tight, overall.


The spread between the 2-year and 10-year yields compressed to as little as 14bps over the past couple of weeks (a change of about 40 basis points from a year earlier).