Australia 10-Year Bond Yield Drops to Record on Europe Concerns
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Australian government bonds rallied, sending the benchmark 10-year yield to a record low, after declines in German bunds sparked concern the sovereign-debt crisis will engulf Europe’s largest economy.
The South Pacific nation’s three-year rate extended its drop this month to 83 basis points, poised for its biggest decline since November 2008, before a German report that may show a gauge of business confidence dropped for a fifth month. The Australian dollar rose from a seven-week low on speculation investors are buying the currency to diversify assets. New Zealand’s currency rallied from its lowest level in eight months as Asian stocks pared an early drop.