Skip to content
Subscriber Only

Australia Stands Out in a Negative Rate World, Goldman Asset Says

  • RBA rate-cut chance seen making debt more appealing than U.S.
  • Aussie set `to be very well supported,' says GSAM's Moffitt
Rolls of Australian dollar bill notes of different denominations are arranged for a photograph in Melbourne, Australia, on Thursday, Aug. 15, 2013.
Photographer: Carla Gottgens/Bloomberg
Updated on

In a world of negative interest rates, the couple of percent you get for owning Australian bonds looks pretty appealing, according to Goldman Sachs Asset Management.

With more than a quarter of sovereign debt globally yielding less than zero, Australia’s positive benchmark rates and economic growth will probably support investor appetite for both the nation’s bonds and currency, said Philip Moffitt, the money manager’s head of Asia-Pacific fixed income. The prospect of further Reserve Bank of Australia monetary easing also makes the securities more attractive than those of the U.S., where policy is being tightened, he said.