For the 4th month in a row Australian bonds performed very well as bond yields fell and the yield curve flattened. The long duration gains favoured government bonds that returned 0.859% for the month, taking their yearly return to 7.28%.
The composite bond index was the next best performer with a monthly return of 0.735% and a rolling 12 month return of 6.42%. Semi government bonds were not far behind with a monthly return of 0.647% and a 12 month rolling return of 6.21%.
Corporate bonds were the laggard for the month but still a respectable 0.574% (12 month return 5.06%). There are fewer long duration corporate bonds and their returns have suffered, compared to government bonds, as a result.
The FRN index returned 0.366% for the month taking its 12 month return to 2.75%, just above the bank bill index of 2.23%. Bank bills returned 0.173% for the month.
|Security||1m Return (%)||12m Rolling Return||6m Rolling Return|