Australia 10-Year Yield Drops to Record Low on Virus Concerns

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPEE470C4_M.jpg
© Reuters. Australia 10-Year Yield Drops to Record Low on Virus Concerns© Reuters. Australia 10-Year Yield Drops to Record Low on Virus Concerns

(Bloomberg) — Australia’s 10-year yield dropped to a record low as the global spread of the coronavirus accelerated the hunt for haven assets.

The benchmark yield slid as much as seven basis points to 0.84% amid rising infections in Europe and South Korea, while the U.S. identified its first case that had no ties to a known outbreak.

Treasuries have led a bond rally as investors increasingly expect global economic growth to slow and central banks to ease policies. Money markets are pricing in a 25 basis point interest-rate cut from the Reserve Bank of Australia in July, taking borrowing costs to a record low 0.50%.

Yields on Austrlaia’s three-year government debt fell 5 basis points to 0.56%.

“In addition to the terrible human toll, markets are now focused on the downside risks to the economic outlook posed by Covid-19,” Australia & New Zealand Banking Group Ltd. strategists including David Plank wrote in a Feb. 25 note. ANZ sees the 10-year yield falling to 0.75% in the first half of the year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment