Australian dollar weak as Aussie bonds roar

The Australian dollar has been soft through the morning with GDP partials suggesting 0.7% growth tomorrow:

Bonds are still well bid with long yields at new lows with the curve flattening. The 2-5 year fell within 14bps of inversion this morning. Even the short end is threatening to break down as RBA hikes disappear, poof!

Weak AUD and strong Aussie bonds is MB Fund Nirvana. XJO is struggling:

Dalian is flat:

Big Iron is up a little but is a goner:

Great to see Big Gas copping it. The east coast cartel is now high risk given Labor’s reservation commitment:

Big Gold is a falling anvil:

Or is that Big Mortgage:

Big Realty really is great at pretending:

Ain’t no housing bust ‘ere!

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.