Tuesday, 22 May 2007

Australian 10-Year Bonds Fall, Pushing Yields to Highest Since June 2004

(Bloomberg) -- Australia's 10-year government bonds
fell, pushing up the yield to 6 percent for the first time since
June 2004, following a decline in U.S. Treasuries as traders
pared bets the Federal Reserve will cut interest rates this year.

Global appetite for debt waned as the odds of a U.S. rate
reduction ebbed after Richmond Fed President Jeffrey Lacker
yesterday said it's up to policy makers to contain price
increases. The yield advantage of Australian two-year bonds over
10-year debt narrowed to the least in two weeks. Longer-dated
bonds typically yield more than shorter maturity debt.


Read more at Bloomberg Bonds News

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