Bond Index performance September

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September was a volatile month for markets and bonds were no exception. Despite the volatility, returns were all positive unlike equity markets that were hammered. The best performing interest rate sector was government bonds. This was partly the flight to safety of government bonds in the face of weakening credit conditions and partly because of the long duration nature of government bonds. As the yield curve flattened, government bonds performed best returning 0.319% for the month and taking their 12 month rolling performance to 7.38%.

The composite bond index was the next best performing index returning 0.25% over the month. Semi government bonds were close behind at 0.219% followed by bank bills with 0.176% and corporate bonds at 0.123%.

100115 bloomberg 12months
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Bloomberg

Security1m Return (%)12m Rolling Return (%)
Bank Bill0.176
2.47
Composite Bond0.2506.91
Government Bond0.3197.38
Semi-Govt Bond0.2197.15
Corporate Bond0.1235.82
FRN0.0252.73

100115 bloomberg ausbond indices

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