Plot the current Australian yield curve for Commonwealth Government Securities (CGSs). At a minimum you should include the target cash rate, 90-day and 180-day rates, and the 2, 3, 5, and 10-year rates.

The Australia 10Y Government Bond has a 2.673%yield. 10 Years vs 2 Years bond spread is 63.8 bp.

Central Bank Rate is 1.50%. The Australia rating is AAA, according to Standard & Poor's agency.

a. Briefly explain the shape of the yield curve, using Expectations Theory and the Segmented Markets Theory

b. How would you expect the movements in the fiscal position identified in B.1) to influence the yield curve?