The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Monday, July 30, 2012

Good news: Aussie bond prices smashed further (yields up); off 40pts over last 3 days (chart)

Aussie 3 year bond futures have been king-hit (see chart below). They are currently trading at 97.49 from all-time highs above 98.0, and a peak around 97.90 in the last three trading days. Notwithstanding the structurally strong demand for Aussie government bonds, this recent price action reflects the perceived reduction in global tail risks. It makes it even less likely the RBA will cut in August--this was already a very low probability event--barring some sort of global shock between now and next week (which is obviously possible).