This time WHY matters.
The 3-year bond rate in the US is 5.30%, the 10-year bond rate 4.65%.
The 3-year bond rate in Aust is 4.35%, the 10-year bond rate is 4.75%.
Banks BORROW to lend to you at the 3-year bond rate (among many other sources) – so money is COSTING the banks 4.35%
They can also borrow (overnight) from the Reserve Bank at the cash rate 4.10% – but the Reserve Bank also needs to borrow that to lend to the banks – so the Reserve Bank is making LOSSES at 4.10%.
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