PerthNorg

Flat yield curve - a signpost to slowdown?

With nine consecutive hikes in the cash rate, and a flat yield curve (courtesy of NAB):

1 year 7.79% pa

2 years 7.79% pa

3 years 7.77% pa

4 years 7.79% pa

5 years 7.79% pa

10 years 7.69% pa

It would seem that the market is 'bracing' for a slowdown despite the inflationary pressures from the commodities-driven boom. I suspect, however, that this boom is sector-specific and hasn't filtered through the rest of the economy - the Sydney property market is only starting to turn upwards again but only because of more fundamental trends eg. positive net migration into NSW, rather than the multiplier effect of China's resource binge.