Foreigners waning interest in Aussie bonds

05 September 2016

 

Australian 10 year bonds yield more than the equivalent maturity of US Treasury bonds. The extra yield is the compensation investor’s demand for the added risk of investing in Australian bonds in Australian dollars. Just recently the spread, as it is commonly known, touched a multi-year low of 25bps suggesting the risk of lending to the Australian Government was only worth only 0.25% per annum more than the risk of...

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