Government bonds are a much underused investment vehicle by Australians with almost 70 per cent of Australian Commonwealth Government Bonds held by offshore investors. That is why the government, through the Australian Stock Exchange, is trying to encourage a much wider spectrum of investors to become buyers and sellers of bonds.
Exchange-traded Australian Commonwealth Government Bonds (ACGB) are the latest major development for financial markets and are now traded on the ASX like ordinary shares. You can choose to hold the bond until it matures or you can now take advantage of a positive price movement in a bond by selling it before maturity. YieldReport carries full pricing details for all Australian government bonds – which come in a wide variety of maturities with a range of interest rates.
These securities come with the same rating as the Commonwealth of Australia itself – AAA – the highest credit rating available. If you are looking for a low risk investment that pays a regular income stream an investment in ACGBs may be for you.