Australian Bonds Gain; Local Dollar Falls to 6-Month Low
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Australia’s bonds rose and its currency touched a six-month low as concern Spain will struggle to rescue its banks curbed demand for assets linked to growth.
Yields on Australian government debt maturing in two years or longer fell to records as a report showed home-building approvals unexpectedly dropped in April, boosting speculation the Reserve Bank will cut borrowing costs. New Zealand’s currency, nicknamed the kiwi, headed for its worst monthly loss since September against the U.S. dollar as Asian stocks slid. The drop in both South Pacific dollars was limited as technical indicators signaled recent declines were too rapid.