Ricardo Caballero has also written on this topic; see Caballero R (2013), “The Shortage of Safe Assets: Macroeconomic Policy Implications”, presentation at the Bank of England, May, available at <http://www.bankofengland.co.uk/ research/Documents/ccbs/cew2013/presentation_caballero.pdf>. 2  BIS central bankers’ speeches  Australian Government Bond Market Yields on Australian Government bonds have been affected by these international factors over recent months as well as some domestic influences.
At the shorter end, the February reduction in the cash rate target and associated repricing of market expectations for future monetary policy have contributed to a decline in yields. At the longer end, there has been a tendency for yields to follow developments in global markets.