As expected the yield curve is much flatter than the last couple of months but nothing too dramatic. The Japanese tragedies will have an impact on global economy as well as its own but it is more likely to be a short term negative impact that will possibly turn into a growth story later in the year. The Japanese rebuild is bound to be a positive on this resource-rich land of ours (Uranium aside, of course).
With bond yields around current RBA cash rates for the next few years it indicates market support of the RBA staying on hold for the time-being.