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These Are the Signs Traders Are Watching for Quantitative Easing in Australia
The weakest economic growth since the global financial crisis is fueling speculation the Reserve Bank of Australia will join its global peers and kick-start quantitative easing. No fewer than seven central banks around the world have employed QE programs over the past decade, according to the Bank of International Settlements. Given this has become a well-trodden path, here are some of the tell-tale portents that show up in rate markets ahead of unconventional easing: 1. Flattening Yield Curve Sovereign yield curves have a tendency to flatten in the run-up to QE. This occurs because shorter-maturity yields are pinned ... (full story)