Nov 16

Australian Government Bonds…even lower!

Source: RBA

Since August the Australian Government Bond yield curve has dropped massively indicating the lower expectation of interest rates and the deteriorating outlook for our economy. I’ve voiced my increasingly bearish view of the Eurozone situation so I won’t go on any further about so I’ll mention the new addition to my yield curve…the new 2027 Australian Government bond. It was issued near the end of October and as the chart shows it is trading at around 4.4%!!! A near 16 year government bond trading below the cash rate…mmmm, cash rates are coming down and clearly I’m not the only one bearish about our economy, the market is too.

   Send article as PDF   

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Get every new post on this blog delivered to your Inbox.

Join other followers: