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Shares and bonds see Australia's GDP shock differently

Vesna PoljakSenior markets reporter
Updated

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The interruption of economic growth during the last quarter, when the economy shrunk by 0.5 per cent, has gone unnoticed by the sharemarket, failing to ruffle bank stocks – which would be most at risk if a recession hits.

The S&P/ASX 200 Index added 49 points or 0.9 per cent on Wednesday to close at 5478.10 points, and the Australian dollar fell 0.4 per cent to US74.30¢. 10-year Australian government bond yields dropped 2.5 basis points to 2.797 per cent, and two-year yields fell 3.9 basis points to 1.74 per cent.

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Senior markets reporter Email Vesna at vpoljak@afr.com.au

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    Original URL: https://www.afr.com/markets/equity-markets/shares-and-bonds-see-australias-gdp-shock-differently-20161207-gt5yr8