Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Bond rates rising in Australia

With our close focus on cash rates, steady at 3% recently, it's easy to overlook longer term rates rising. Rates are up about 0.6% in the 10 year maturity since their lows of June 2012, on offshore selling and switching into equities. These movements are significant for long bonds and generate capital losses for fixed interest portfolios with long duration.

Source: Bloomberg


 

Leave a Comment:

RELATED ARTICLES

Inflation? Nothing (much) to see here

Australian bond yields and inflation

banner

Sponsors

© 2024 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.