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Aug 03

Australian Government Bond Yields…getting ugly now

The above Australian government bond yield curve is only yesterday’s data and its looking grim (today’s much worse). I imagine that the Australian dollar/bond is looking quite attractive compared to European and US bonds  so I’m sure that has some influence but its still indicative that the markets aren’t that positive about markets nor our economy at this point in time.

Two to three year bonds in the above chart are showing yields just over 4.2%, well a 2 year bond today is only 4.09%! The market does not believe the inflation story and believes the RBA is going nowhere for some time.

A few weeks ago I mentioned that term deposits were my preferred investment destination…pretty true and their rates should be down a long way about now.

 

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