Aussie Bonds to Gain as Growth to Miss Forecasts, BT Says
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BT Investment Management Ltd. is buying Australia’s government bonds, betting that forecasts that the nation’s economic expansion will top 3 percent this year are too high.
Australia’s economy may grow about 2.5 percent in 2012 as the government cuts spending, Vimal Gor, Sydney-based head of income and fixed interest at the Australian asset manager, said in an interview last week. That compares with a median forecast for a 3.4 percent expansion in a Bloomberg News survey of seven economists and a prediction of between 3 percent and 3.5 percent growth from the central bank in February.