This is an edited version of a live discussion as I explore the latest economic and financial news with Leith van Onselen, Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
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– The chart with interest rates at the beginning of the video (at 03:05) is actually very interesting because it shows that Mr. Market seems to believe anymore that long term rates are going to rise that steeply (anymore).
– In a previous chart with the same rates the longer term maturities were ALWAYS higher than rates with a (slightly) shorter marturity (without any exception !!!). But in the chart you’re showing right now in this video the rates for 1 year maturities and longer are barely rising anymore. This is a clear sign that Mr. Market is changing its mind about the prospects of the australian economy.
– When one looks carefully then you’ll see that rates rise sharply up to november of 2022. After november 2022 rates are still rising but at an increasingly lower rate.
– No, Mr. Market is starting to change his mind when it comes to (future) rising rates.