Australia Safer Bet Than U.S., Germany as Default Looms
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Australia is being seen as a safer bet than both the U.S. and Germany as concern increases the U.S. may default and Europe struggles to curb deficits.
Investors are paying less to insure Australian government bonds than Treasuries or German bunds for the first time since April 26, 2010. Credit-default swaps to cover the South Pacific nation’s debt for five years traded at 57.69 basis points yesterday, according to CMA prices in New York. U.S. swaps were at 62.47 and German contracts at 62.25.