Longest Aussie Bonds Make Twice as Much as Yields Drop to Record
- Bonds due in more than 10 years have gained 7.9% this year
- Yield on 10-year bond fell to a fresh record on Monday
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Australian bond investors willing to lend for longer made twice as much as peers who bought shorter maturities as fragile global growth sent yields tumbling to record lows.
Securities due in 10 years or more gained 7.9 percent in 2016, compared with 3.3 percent for notes due in less than a decade, the Bloomberg AusBond Composite Index showed as of Monday. Notes from Victoria and Queensland state governments due in the 2030s are among the best-performing individual bonds, along with long-dated federal government paper. Some of the strongest gains among non-financial companies have come from Melbourne Airport, Australian National University and Asciano Ltd.