Good morning folks, it’s Sunil here in Sydney. Here’s what you need to know to start your day.
Today’s must-reads:
• An economic alarm bell sounds in the bond market
• Employers offer sign-on bonuses to get staff
• New Zealand recession may be a global prelude
Australia’s bond yield curve inverted for the first time since the 2008 global financial crisis, an indication that markets are increasingly pricing in the risk of a recession. The inversion means that shorter term yields, which are more sensitive to the outlook for the Reserve Bank of Australia’s benchmark interest rate, are higher than those for longer tenor debt. The pattern mirrors peers like the US, as traders bet that an extended global hiking cycle will push economies into downturns in the months ahead.
