June bond performance


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It was another tough month for bond fund managers with only the bank bill index and the floating rate note index generating positive returns. The Greek debt crisis had bond investors ducking for cover and long bonds globally saw sharp sell-offs. The government bond index was the worst performer at -1.12%, followed by the Composite Bond Index at -0.912% and the semi government bond index at -0.814%. The FRN index generally performs better in a rising interest rate market as the benchmark rates they are based on usually rise as well. The 12m returns of the bond indices have seen decent reductions as well with very similar returns among the top 4 indices.


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Bloomberg AusBond Indices1m Return12m Rolling Return
Bank Bill0.1872.60
Composite Bond-0.9125.63
Government Bond-1.1215.80
Semi-Govt Bond-0.8145.73
Corporate Bond-0.5495.41