Negative yields could be on the way to Australia’s market

Original article by Vesna Poljak, Jonathan Shapiro
The Australian Financial Review – Page: 21 & 26 : 26-May-16

The yield on Australian government bonds recently reached a record low of 2.2 per cent, and Arif Husain of T. Rowe Price has warned that yields may eventually fall into negative territory. The head of international fixed income says investors should consider whether bonds continue to provide the level of income and stability they require. He favour Serbian bonds for income and Swedish covered bonds for stability, with the latter hedged in Australian dollars.

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