Aussie Bonds Gaining 45% Over Six Straight Years Keep AAA Allure
- Rebound in local dollar eases hurdle for overseas investors
- There's still demand to buy Australian bonds, CIBC's Oh’E says
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Australia’s bonds rallied for a sixth straight year in 2015, longer than any other major developed debt market except Japan, and investors say the nation’s AAA debt is still appealing in the global hunt for yield.
Aussie debt returned 3.2 percent, rounding off a 45 percent gain since the end of 2009, based on Bank of America Corp. Merrill Lynch indexes. Even after a rally in prices as the central bank cut interest rates 10 times over four years, the nation’s 10-year yield of 2.80 percent is still about half a percentage point more than similar-maturity Treasuries and 2.17 percentage points more than equivalent German bunds.