Alert - Aussie-US 10-year yield spread hits 17-year low

The Aussie dollar is close to losing its "high yielding currency" status.

The spread or the difference between the 10-year Aussie government bond yield and the 10-year US Treasury yield has narrowed to 9.6 basis points; the lowest since March 2001.

It is worth noting that the Aussie-US 2-year yield spread turned negative in the fourth quarter of last year. The spread currently stands at -0.05 basis points, i.e. US 2-year bonds offer 0.5 basis points more than their Aussie counterparts.