Monday, November 5, 2018

Australian housing crash finally coming

This might be your last chance to bet that the Australian central bank will not raise rates as much as the market expects.  I'm long IR futures (90-day bills in Australia) betting they'll have to lower rates.  I pick up the carry of the backwardation built into the term structure, as well.  As of this writing, June 2020 futures trading at 97.80.