Aussie 10-yr bond yield drops to lowest since November, Trump rally erased

The benchmark 10-year government bond yield in Australia dropped to 2.642%, it’s lowest since mid November 2016. 

The yield is down 5.3 basis points today. The retreat from the December high of 2.945% is largely in line with the pull back in the bond yields across the globe. 

The drop to levels last seen in November means the ‘Trump rally’ has been erased. Moreover, Trump has delivered on tough promises, but is yet to deliver on the fiscal plan he promised during the election campaign. 

The pull back in the global bond yields suggests the reflation trade is running out of steam.