Longest A$ bond shows belief in budget amid deficit

Singapore

INVESTORS in Australian debt will probably give a vote of confidence to efforts to repair the nation's finances as the government sells its longest bond.

Wednesday's sale of the 2037 note comes after Bank of America Merrill Lynch warned that Australia's government will probably miss its deficit target for the year through June 2015. Demand for the highest yields among AAA sovereign markets has driven three consecutive quarters of gains in the Bloomberg Australia Sovereign Bond Index. Australia & New Zealand Banking Banking Group Ltd said the relative attractiveness should ensure "considerable overseas demand" at the sale.