‘Playing a starring role’: Why the world’s markets are keeping a close eye on the RBA – The Sydney Morning Herald

Widening gap
Beneath the surface, problems appear to be building Down Under too. While the RBA has its thumb on one specific bond line, there is a large gulf between the yield on this security and those maturing slightly later. Theres also a widening gap to rates on the suite of derivatives linked to three-year yields that flow through into borrowing costs for companies and consumers.
I dont think its ever wise to fight anyone that has a printing press. The RBA as a house holds all the cards. If…

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