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Underperformance In Aussie 10s Vs. U.S.

AUSSIE BONDS

Note that the Australian 10-Year government bond has underperformed its U.S. counterpart during the latest bout of risk-off trade. That has pushed the Australian/U.S. 10-Year government bond yield spread back above 20bp. As a reminder, the 30+bp zone has been the area that has driven outright interest for cross-market narrowers in recent times.


Fig. 1: Australia/U.S. 10-Year Government Bond Yield Spread (bp)

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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