13 July – 17 July 2015

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3y bonds closed up 4bps to 2.02% after touching a high of 2.06% and the 10y bonds closed flat at 2.99% after reaching a high of 3.075% on Wednesday. In contrast, 10y bonds in the US, UK, Germany, France, Italy all saw yields falling. US rates finished the week down 5bps to 2.40% and German yields dropped back to 0.73%. There was general relief at the beginning of last week as the Greek bailout was close to resolution. Some final hurdles – the package being voted on by the Greek and respective European parliaments – caused a little volatility but the overall change on the week was modest. Janet Yellen’s speech on Wednesday added little and CPI data out of the UK, plus BoE statements, reinforced the case for higher US and UK rates by the end of the year.

Local data was minimal but saw some selling of bonds with NAB business conditions jumping 5pts to 11pts and confidence jumping 2pts to 10pts.

There were two bond tenders last week with $800m of the April 2020 sold in a well bid auction but the $900m Apr 2026 bonds on Wednesday had a rather low coverage ratio.

government-yield-17july
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AUST GOVT BONDS

MATURITYCOUPON
(%)
ISSUE
SIZE ($M)
CLOSING
YIELD
Δ WEEKΔ MONTHWEEK
HIGH
WEEK
LOW
WEEKLY
ASX T/OVER
$ VALUE
21-Oct-154.7511,3992.00-0.010.002.012.0050910
15-Jun-164.7521,9001.950.020.041.951.9330904
15-Feb-176.0021,0961.940.010.031.961.9474176
21-Jul-174.2518,9001.960.030.071.981.9455825
21-Jan-185.5020,5001.960.020.111.991.93168293
21-Oct-183.2513,5002.010.050.112.041.9927673
15-Mar-195.2521,4472.050.050.122.082.0323726
21-Oct-192.7511,7002.150.040.112.192.140
15-Apr-204.5020,3972.210.030.082.252.200
21-Nov-201.755,0002.360.020.082.412.350
15-May-215.7522,2992.400.030.082.452.400
15-Jul-225.7518,2002.590.010.072.662.590
21-Apr-235.5021,3002.720.010.072.792.720
21-Apr-242.7522,9002.850.000.062.932.851990
21-Apr-253.2518,9002.950.010.073.032.951744
21-Apr-264.2516,9003.030.010.073.113.030
21-Apr-274.7515,1003.090.010.083.183.090
21-Apr-293.259,7003.250.000.083.343.250
21-Apr-334.509,8003.41-0.010.083.503.410
21-Jun-352.754,2503.54-0.010.083.633.540
21-Apr-373.757,5003.56-0.020.083.663.567390

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