23 Nov – 27 Nov 2015

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Yields fell again this week, this time on the back of domestic data rather than from any offshore (US) lead. The yield curve continued its flattening trend as yields at the long end fell a fraction more than shorter term yields. The 3y/10y bond spread dropped by 2bps to 78bps as 3 year yields moved down 5bps and 10 year bond yields moved down by 6bps. Since mid-August, the 3y/10y bond spread has generally ranged between 80bps and 90bps and this week marks the first time the spread has gone under 80bps since May.

bond spread 27nov
bond curve 27nov
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