COMMENT

It's been quite a time for the markets this August.

First the Reserve Bank cut the Official Cash Rate to a new record low of 1 per cent and last week we observed the first inversion of the US yield curve between two-year bonds and 10-year bonds since 2007 – which means the returns from short-term bonds were higher than from long-term bonds (usually, it's the other way around, because investors demand higher returns for waiting longer until they get their money).

This has drummed up a lot of noise because many investors and industry people see an inverted

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