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).