Commentary courtesy of Spectrum Asset Management’s Lindsay Skardoon.
| Close | Prev Close |
Change | |
| Aust. 90 day bank bill% | 1.93 | 1.92 | 0.01 |
| Aust. 3 year bond%* | 2.15 | 2.15 | 0.00 |
| Aust. 10 year bond%* | 2.80 | 2.81 | -0.01 |
| Aust. 20 year bond%* | 3.21 | 3.22 | -0.01 |
| U.S. 2 year bond% | 2.25 | 2.27 | -0.02 |
| U.S. 10 year bond% | 2.84 | 2.87 | -0.03 |
| U.S. 30 year bond% | 3.10 | 3.13 | -0.03 |
| * Implied yields from Mar 2018 futures | |||
LOCAL MARKETS
Bonds should be steady to slightly improve. This period may become a risk-off period in which case we could see solid gains for bonds.
U.S. BOND MARKETS
The introduction of tariffs is now expected. For bond investors, this uncertainty is a manna from heaven.