It’s Probably Nothing

Luckily, Australians are now trained to be properly submissive.

Australia’s central bank on Friday lost all control of the yield target key to its stimulus policy as bonds suffered their biggest shellacking in decades and markets howled for rate hikes as soon as April.

An already torrid week for debt got even worse when the Reserve Bank of Australia (RBA) again declined to defend its 0.1% target for the key April 2024 bond , even though its yield was all the way up at 0.58%.

More: Is Australia the Dead Canary in the Global Bond Market?

So let’s dig in…

First up is the market action. On Thursday, Australia’s two-year bond yield more than doubled after the Reserve Bank of Australia declined to buy two-year bonds.

What does this mean? If the Australian government were to borrow money for two years, the interest rate they’d have to pay doubled in a single trading session.

Can you imagine if your mortgage rate doubled?

How rare is this doubling? ZeroHedge calculates it’s a five-sigma move, which is supposed to happen one day in every 13,932 years. In other words, it’s the biggest surprise for the Aussie bond market since the Lehman crisis.

What’s the explanation for why it happened?

Via Instapundit.

21 Replies to “It’s Probably Nothing”

  1. Next up? Why not another progressive lockdown country with massive deficits, raging inflation, and rudderless government?

    And the contagion is on.

      1. maybe worse . i have two sets of aussie cousins . covid and lockdowns is now relegated to the dustbins of history in terms of polite discussion. they have been hiding in their houses for months now .

        1. And they are unwilling to buck the system? Death camps are in the offing if no one steps up to put a stop to this.

      2. Canada’s long overdue for collapse. The 2 Liberal Thieves Chretien and Martin held them off last time by stealing 54B from the workers of Canada’s EI Fund. That was being held in trust by Ottawa. They also sold off all of Canada’s extensive Gold Reserves of over 1000 Metric Tonnes.
        In 2014 Under the Globalist and FakeCON HARPER the Total Government Debt was already 4.1T and the Baby Doc Justin added another 2T since he was installed as the NEW FAKE QUEEN of the Penal Colony.
        Canada now owes more debt than almost the whole of the EU.
        What do you suppose comes next?
        https://resourceworld.com/none-canada-sells-gold/#:~:text=Despite%20all%20that%2C%20no%20central%20bank%20has%20openly,that%20decision%20at%20some%20point%20in%20the%20future.

        Total Public Debt Under SHITCON HARPER.
        4.1T
        https://torontosun.com/2014/04/11/all-levels-of-canadian-government-debt-total-41-trillion

        Canada Finance Minster when he handed out 2T for Justin said Canada had 18M workers and 4M were Government workers. What do idiot Canadians think comes next.
        More Unicorn farts and skittles. You are going to be bankrupted by HYPERINFLATION you idiots. Many sadly will lose jobs, homes and your families.
        Keep voting for free shit and you will be homeless. That is the way it goes.
        Look at Venezuela. Arm Up and Stock UP.

    1. A big push out of the US trading dollars as China and other countries lock in long-term contracts for their much starving energy needs.

      https://www.zerohedge.com/commodities/us-coal-miners-all-sold-out-coal-2022

      As our own governments deem fossil fuels are bad for us, companies are selling long-term contracts abroad.

      The Aussies are already being encouraged to buy Bitcoins as well.

      https://www.zerohedge.com/crypto/australias-top-securities-regulator-says-it-will-approve-bitcoin-etfs

      This could only mean that the US trading dollars are on borrowed time right now and hyper inflation is on its way for any countries still trading in its toxic economic market.

      1. Bitcoin, that magical currency that you can neither see nor hold, and whose very existence depends on a stable power grid!
        I’m sure this will all work out just fine /s

        1. Our bankers are encouraging a complete collapse of the internet which is their biggest fear as credit is created ‘not through the banks’ is getting out of control and inflation makes many more billionaires that they can’t control as well.
          Too much propaganda over the decades making some of them unknown risks to their own safety and security as technology makes better and smarter weapons.
          Better to create Chaos and crash the system and start a new in a few years.

          1. The new economy after the collapse, if it should occur, will be a barter economy.
            Food and fuel, guns and ammo and useful tools. Dogs and cats will take a hit as will the rodent population. Everything else will be valueless.

  2. Thanks for the two informative posts. Note that Canada and Australia have very similar economies. The two countries also have similar supine populations.

  3. Former Governor of the Bank of Canada, Mark Carney (now UN Special Envoy on Climate and Finance), called the G20’s pledge to limit global warming to 1.5 deg C “an anchor”. I don’t think he knows what an anchor is. Try walking a Great Dane that doesn’t like rainy weather.

    He called for a “limited amount of funding” for support of oil & gas development for “transition” purposes only to renewable energy.

    He called for the elimination of coal-use in “the advanced economies” (aka not China, not India).

    “Relentlessly, ruthlessly focused on NET-ZERO” … which means if I say I’m net-zero, then I’m net-zero, because it is a judgement-based system. And who are the judges?

    He prefers interest rates going up rather than “falling into a liquidity trap” which was where we were. So … everything is good.

    According to Bloomberg.

    Meanwhile equity markets have already priced in 2 rate-hikes and are poised to roar higher.

    1. Without Fossil Fuels 7B will die a slow death from starvation.
      And as has been shown in Canada, they are stupid enough to vote for Zero Fossil Fuels.

  4. Not a lot makes sense anymore in a world where debt is pursued like the arse of a golden goose.
    Using a credit card to pay the minimum balance of another credit card is pretty much central bank logic.

  5. Speaking of “green-washing” BNN is now discussing “sustainable debt” aka brain-washing. If it’s green debt it’s sustainable debt, by default. Ha – default.

    1. BNN is not a credible network for any business discussions, just CTV rewrapped, with all the same Liberal party BS propaganda

  6. At what amount of debt do the banks foreclose on all public debt and then we will be literally “owned” by a private enterprise?
    You think it’s expensive for a day pass to Banff National Park now……….

    https://www.donaldwatkins.com/post/the-rothschilds-controlling-the-world-s-money-supply-for-more-than-two-centuries

    “In 1987, Edmond de Rothschild created the World Conservation Bank to gain control of land in third world countries, which represent 30% of the land surface of the Earth. The bank assumes the debts of these countries in exchange for real estate that is conveyed to the bank.”

  7. What was that I was saying about Australia a few weeks ago? Instead of watching Trudeau/Biden for buzz words of the day, maybe watch Australia instead, after a comment from a Health Official about “The New World Order”. If my memory is correct; the next day they ended lockdowns after violent crackdowns on protestors and after criticism that said lockdowns were the reason for the poor economy, not Covid. Coulda had Trump.

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