Oversold Aussie yield curve is good for an ASX 200 rally

The vertical lines show when the AU 10Y-2Y yield curve becomes oversold (on a weekly basis) it coincides with a starting point for an advance in the ASX 200.

Keep in mind, this is not a study about an inverted yield curve. On that topic, the current Australian 10 year minus 2 year government bond yields are not forecasting a recession.

October 14, 2022

by Rob Zdravevski

rob@karriasset.com.au