Pimco Sees Spreading Slowdown Boosting Bonds: Australia Credit

Australia’s government bonds are forecast by economists to beat Treasuries for a third year in 2013 as Pacific Investment Management Co. says below-average global growth rates are spreading to the South Pacific nation.

Investors in 10-year Australian notes will reap a 3.7 percent gain next year if the yield is little changed at 3.36 percent, the median forecast from 19 economists surveyed by Bloomberg. Similar-dated Treasuries will deliver a 0.9 percent loss should rates rise to 2.17 percent, the result of a similar survey. Australian bonds returned 5 percent in 2012, versus 2 percent for the U.S., data compiled by Bloomberg show.