Bond proxies and dollar feel pinch as US yields surge to seven-year high

Original article by David Rogers
The Australian – Page: 17 & 28 : 17-May-18

The Australian dollar has fallen below $US0.75 after the yield on US 10-year government bonds peaked at 3.09 per cent, the highest level in seven years. This in turn prompted a sell-off of Australian-listed bond proxy stocks on 16 May, despite the local sharemarket posting a slight gain for the day. Hasan Tevfik of Credit Suisse expects global bond yields to rise further, and notes that Australian government bonds have a lower risk profile at present due to factors such as the nation’s low official interest rates.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, VANGUARD INVESTMENTS AUSTRALIA LIMITED, AUSTRALIANSUPER PTY LTD, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, TRANSURBAN GROUP LIMITED – ASX TCL, SYDNEY AIRPORT – ASX SYD, SPARK INFRASTRUCTURE GROUP – ASX SKI, APA GROUP – ASX APA, MIRVAC GROUP – ASX MGR, DEXUS RENTS TRUST, GPT GROUP – ASX GPT

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