Global Funds Seek Refuge in Australian Bonds as AI Boom Wobbles

Investors are piling into Australian bonds as one of the world’s safest and highest-yielding sovereign debt markets offers shelter to those fleeing an AI scare trade.

Inflows into Australian bond funds tracked by Morningstar Inc. topped A$4 billion ($2.8 billion) last year, the most in four years. At 4.72%, the nation’s 10-year benchmark offers the highest yields among developed markets.