Aug 05

Australian Government Bond Yields…Kapow!

Source: Bloomberg

This is the morning’s action on the bond market today. 3 year bond yields are close to 3.80% and I’d say Bill Evans (Westpac) will come out looking like a genius (perhaps I should too but unfortunately I doubt it) after predicting the next rate move will be down.

With markets around the world capitulating I’d say Ben Bernanke will be announcing QE3 very shortly as we may have another crisis on our hands if not…risk is off and capital markets are not heading in a comfortable direction. Spanish and Italian bond yields are well over 6% suggesting the Euro crisis is getting much much worse, and with the US tightening fiscally (thanks to the ridiculous debt ceiling debate), where global growth is coming from noone knows.

   Send article as PDF   

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Get every new post on this blog delivered to your Inbox.

Join other followers: