Economist

Richard Iley

Macroeconomics

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<p>As predicted several months ago, long-term Ozzie and US government bond yields are now kissing for the first time since the Asia Crisis almost twenty years ago (see <a href="https://www.smartkarma.com/insights/chart-of-the-day-18-years-is-a-long-time-between-kisses" target="_blank" data-smartkarma-citation="insights:15174">Chart of the Day: 18 Years Is A Long Time Between Kisses...</a>). 10-year yields for both economies are now oscillating around 2.80-2.85%. </p>
<p>It is hard to overstate what a seismic shift this represents for the AUD. Its long-run, historic yield advantage over the USD has evaporated. Carry trade dynamics will no longer support the AUD. This…</p>
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As predicted several months ago, long-term Ozzie and US government bond yields are now kissing for the first time since the Asia Crisis almost twenty years ago (see Chart of the Day: 18 Years Is A Long Time Between Kisses...). 10-year yields for both economies are now oscillating around 2.80-2.85%. 
It is hard to overstate what a seismic shift this represents for the AUD. Its long-run, historic yield advantage over the USD has evaporated. Carry trade dynamics will no longer support the AUD. This…


Chart of the Day: Pucker Up!