Sentiment lowest since GFC
Rate hikes have had quite an impact on sentiment.
In fact surveys suggest that consumer sentiment is now lower than at the nadir ensuing from the Zombie apocalypse of 2020.
It's the lowest level since the global financial crisis of 2007-2009.
Still, financial markets are pricing for 11 basis points for April, and about the same again for May, suggesting that another interest rate hike before the end of this cycle remains likely.
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Taking a more considered medium-term view, Australia's 3-year bond yield is trading at 3.3 per cent.
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US yields have moved markedly lower ahead of tonight's payroll report, amidst fears that US banks are increasingly under stress (with Silvergate bank going into liquidation).
Already there are billionaire calls for bailouts, but somehow I don't think this will go down too well given some of the dross that Silicon Valley has served up over the past few years...
Growth in the US M2 money supply has now turned negative for the first time in modern history, likely portending a slowdown in due course.
