Markets shrug off $500b debt load

John Kehoe and Phillip Coorey

Jun 5, 2020 – 5.46pm

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Markets shrugged off forecasts the coronavirus will add $500 billion to government debt this decade - they pushed the Australian dollar past US70¢ and extended the fastest bull market in ASX history.

As Prime Minister Scott Morrison signalled he will rein in some emergency coronavirus expenditure and instead aim to get people back to paid work, the S&P/ASX 200 finished the week 4.2 per cent higher and 32 per cent above its March low.

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.

Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence.