Australian bond yield curve flattens post China data

Omkar Godbole FXStreet Contributor

Long duration bond yields in Australia dropped more than theones at the shjort-end of the curve, leading to a flatter yield curve, which indicates markets may be pricing-in an economic slowdown.

At the time of writing, the 10-yr yield was down almost five basis points to 2.315%. Meanwhile, the 2-yr yield, which is more sensitive to short-term interest rate expectations/inflation expectations, dropped two basis points to 1.727%.

The 10-yr yield was on the rise earlier today, before China data showed a drop in the industrial production number.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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