Australian Economy Australian interest rates

Markets wake in fright to RBA recession

Wednesday 7 December 2022

It’s been a while coming but the Aussie yield curve is beginning to break down as markets realise that Phil Lowe is about to compound his policy errors to date.

Yesterday’s hawkish RBA statement barely registered as bond selling. Instead, the move was bought and yields at the long end are on the verge of breaking lower:

The looming US CPI and intensifying Ukraine War may have helped as well.

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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.