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Plenty of Bond Turmoil to Come, Says Australia Pension Giant

  • U.S. 10-year may go to 3.7% by year-end, MLC’s Armitage says
  • MLC, Australia’s No. 3 pension fund in 2017, trims stocks too
Electricity Usage in Sydney As Energy-Rich Australia Ends Up With World's Priciest Power
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The developed world’s continuing roll-back of unprecedented monetary stimulus, alongside an acceleration in inflation, means there’s plenty of pain yet to come in bonds, one of Australia’s largest pension funds says.

“There is no doubt that there is a disconnect between the inflationary risk that’s coming through and where bonds continue to be priced,” Jonathan Armitage, chief investment officer at MLC, the wealth-management unit of National Australia Bank Ltd., said in an interview in Sydney. “The bond market has shifted a fair amount but we’re only part way through that transition.”