Anyone else noticed this over the past few months?
Huge buying int he back end of all major economic curves in recent months but Australia is getting to the point now where we are verging on inversion.
Does the mantra of an inverted yield curve = recession still stand or is this a new age?
Interesting that the inversion is happening not because of hikes being priced into the front but rather just investors falling over themselves to buy the back - surely this can't bode well? In fact they are pricing in 1-2 more cuts in the near future as per http://www.asx.com.au/data/trt/ib_ex...urve_graph.pdf
Always interested to hear the thoughts of the guys smarter than me on this.
Aussie yoeld curve.png
As the duck says - click to enlarge.