The Business Times

International

The Business Times
Subscribe
Share on FacebookShare on TwitterView more
The Business Times
Create a free account with Business Times for seamless access across SPH Media products.
REGISTER
LOGIN

International

SUBSCRIBERS

Aussie bond yield premium over US set to end

Monetary policies going in opposite directions, with the Fed planning to raise rates and RBA likely to lower them

Published Sun, Dec 21, 2014 · 09:50 PM
Share this article.

Singapore

AUSTRALIA's bond yield premium over the United States will vanish for the first time since 2000 as monetary policy diverges, according to Goldman Sachs Asset Management.

The extra yield that Australia's 10-year bonds offer over similar-maturity Treasuries shrank to 64 basis points on Dec 17, the least since June 2006 and down from as much as 153 in March. The Federal Reserve said last week it is on course to raise borrowing costs in 2015, while traders have priced in at least one interest-rate cut from the Reserve Bank of Australia (RBA).

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here