T-Notes negative, cash follows
Why wouldn’t the cash rate be zero or negative in Australia?
Banks are not lending to business, not meaningfully and they are throwing everything at a household-led economic recovery from the 2020 Covid shock.
It is wishful thinking to foresee 2021 as a year to look forward to. The GameSpot nonsense can only portend a reckoning via the equity market and with CCC credits pricing way too tightly, a credit shock worth having is, as ever, near.
The primary market for Australian Treasury Notes has been pricing negative for weeks.
“Once again, the T-Note tender found negative bids,” wrote Peter Sheahan from Curve Securities in his weekly money market comment on Friday.