Bond yields fall away despite stock boom

Thursday 16 January 2020

The long bond yield hit its lowest level this year today:

The remainder of the curve is still slightly above the lows. It has been flattening over the past few weeks, partially reversing what was only a weak steepening through late 2019:

This has largely been a global phenomenon as bond markets refuse to buy into the equity party so Aussie spreads to the US are stable:

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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.