RBA lagging in rate increasesThis chart looks at the 2 Year Aus Bond Yield minus interest rate to see how much the RBA has been putting the pedal down on expansionary and contractionary policies over the years. A positive reading signifies expansionary and a negative reading is contractionary.by AshestoAshes1
Australia 2YR bond overlay with interest ratesPretty clear how the 2YR bond market is correlated with IR. Most people knew this alreadyby gersonadr110
ridethepig | Australian Yields for the Yearly Close📌 @ridethepig AU02Y Market Commentary 18.12.2020 This position which arises after the telegraphed breakout from the 10Y and thus creates space for the front end. A typical manoeuvre for the AU and NZ yields: The analysis of the starting position shows us that the control now exists on the bid; because we know that it is the path of least resistance, so the rule is; when the market is strong we are buyers and when weak, we are sellers. The AUD which is being "flanked" from all sides (FED, RBNZ et al) now has commodity shortages entering into play to put the cherry on top. Remain bid AUD for as long as possible; maintain contact with commodities for this cycle. Thanks for keeping the feedback coming 👍 or 👎Longby ridethepigUpdated 9
Aussie Yields Exploding!· The prediction I made of Australian Yields needing rebalancing earlier in the year points to slightly above average AUD buying throughout 2021 finally came to fruition. · NZ and AU 10Y Yields bounced strongly first after the sweep of lows. The analysis of the starting position showed us that the control now exists on the bid; because we know that it is the path of least resistance, so the rule is; when the market is strong we are buyers and when weak, we are sellers. · Commodity shortages/outperformance means that the signal is strong to stay long AUD and reduce hedges, adding to domestic AUD exposure. by ridethepigUpdated 5523