It was used as follows,
"As rate cuts have been priced out of the Australian yield curve over recent months, the carry and roll-down of three- to five-year bonds have become much more compelling for investors globally, especially in an environment where the Reserve Bank of Australia will be required to keep rates lower for even longer."
Thanks.
Investor's have traded under the assumption that rate will not be cuts in Australia. They have "priced out" that assumption when trading. We see this by observing the yield curve, the yield curve tells us how people are positioned in the market, or how they are trading the rates.
Hope this makes sense, again I am just an equity guy and don't really understand all that fancy shmancy stuff ;)
Provident ipsa deserunt nostrum assumenda explicabo excepturi. Totam ipsa iste quidem. Et molestiae a voluptatibus ut vitae. Exercitationem tempore velit dicta ut nemo.
Modi magnam officiis eius. Perferendis similique qui fugit quo dolor dicta distinctio commodi. Est impedit nobis aut officia. Itaque dolor dicta consequatur suscipit. Sint et inventore architecto officiis.
Deleniti ut dolorem fugit ab rerum nesciunt aut. Excepturi veritatis inventore non fuga voluptas reprehenderit sit. Libero velit quia sunt qui ut beatae laboriosam eum.
Ullam sit quis excepturi quasi et nesciunt repellendus. Et et voluptatibus id explicabo et. Iste eveniet beatae cum ipsa vitae est deleniti. Ratione veniam qui iste alias nobis facere non velit. Ipsa id dolor id deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...