Aussie-U.S. Premium Seen Shrinking to 2006 Low: Australia Credit
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Australian government bonds will outperform U.S. peers in the coming eight months, shrinking the yield premium offered by benchmark notes to the least since 2006, as growth prospects for the two nations diverge.
Australia’s 10-year yield will be little changed at 3.71 percent by March 31, while the rate for similar-maturity U.S. Treasuries will rise 20 basis points to 2.78 percent, according to the average forecasts of analysts surveyed by Bloomberg News. That would shrink the difference to 93 basis points, which would be least since November 2006.