Source: Bloomberg, RBA
The above chart uses price from this morning for the 28 September data and as it shows there has only been a slight improvement in the yield curve over the last couple of weeks so really no significant impact on troubled beliefs at this point in time. Overnight the equity markets were very strong, particularly in Europe, but there is no strong evidence of any Euro-debt resolutions and the market rally is currently one based on ‘hope’. Volatility will continue.