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Westpac On The Real Yield Dynamic In 10s

AUSSIE BONDS

Westpac note that “10-Year real yields are around 25bp away from positive territory. With 10-Year BEIs in the lower half of the RBA’s target band, there is unlikely to be a major re-pricing of inflation risks higher once the RBA begins its tightening cycle. So real yields will do the “heavy lifting” when it comes to our expectation that Australian 10-Year bond yields will reach 2.5% in 2022.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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