A gap was also observed between the yields for on-the-run issues of 10-year JGBs, which are eligible for the Bank's fixed-rate purchase operations, and those for issues of 20year JGBs with a residual maturity of 10 years.
So the question is: Why was there such a sudden reversal in the second half of the year, particularly the December quarter? Economies as well balanced as the Australian economy was at mid-2000 do not just run out of steam: there has to be a reason, or perhaps several reasons.