GOVERNMENT SECURITIES – AUSTRALIA

Australia raises $7.6b in first 30-year bond

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 13-Oct-16

The inaugural issuance of 30-year Australian government bonds attracted more than $A13bn worth of bids from prospective investors. The offer was capped at $A7.6bn, and the yield on the long-dated bonds will be 3.27 per cent. This is significantly higher than equivalent bonds in the US, the UK and Japan, while financial market watchers had anticipated a yield of between 3.21 per cent and 3.28 per cent. Demand for the 30-year bonds and the limited supply is likely to result in strong activity in the aftermarket.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, QIC LIMITED, JP MORGAN AUSTRALIA LIMITED, BANK OF JAPAN, EUROPEAN CENTRAL BANK

Investors embrace maiden 30-year government bond

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 12-Oct-16

There has been strong demand among international investors for the inaugural issuance of 30-year Australian government bonds. The bonds will mature in March 2047 and investors will receive a rate of 3.25 per cent. The yield on 10-year bonds is currently around 2.25 per cent. The volume and pricing of the 30-year bonds will be determined on 12 October 2016, but the issuance is believed to have attracted around $A7.5bn worth of bids from prospective investors.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, JAMIESONCOOTEBONDS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Bull market in bonds not over just yet: Citi

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Original article by Chris Kohler
The Australian – Page: 32 : 27-Sep-16

The yield on Australian 10-year government bonds peaked at 2.13 per cent on 21 September 2016, but it has since retreated to below the two per cent level. Citigroup does not believe that the recent spike in bond yields will signal the end of the three-decade bull market, and the firm does not expect the rise in yields to be sustained. Citigroup notes that financial stock are among those that should benefit from higher bond yields, while it says Australian stocks that are vulnerable include real estate investment trusts and utilities.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, APA GROUP – ASX APA, SYDNEY AIRPORT – ASX SYD, TATTS GROUP LIMITED – ASX TTS, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, HEALTHSCOPE LIMITED – ASX HSO, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, CALTEX AUSTRALIA LIMITED – ASX CTX, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, EUROPEAN CENTRAL BANK

Brexit II pushes Aussie bonds to record low

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Original article by Vesna Poljak, James Chessell
The Australian Financial Review – Page: 1 & 29 : 7-Jul-16

The yield on Australia’s 10-year government bond fell to a record low of 1.84 per cent on 6 July 2016. Bearish sentiment toward equities also prompted the yield on US Treasuries to fall to 1.34 per cent. The global shift to "safe haven" assets also prompted a rally in the gold price, which reached its highest level in two years. Meanwhile, the fallout from the UK’s vote to leave the European Union is continuing, with several British property funds moving to freeze redemptions.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, BANK OF ENGLAND, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, AXA INVESTMENT MANAGERS PTY LTD, M&G INVESTMENT MANAGEMENT LIMITED, AVIVA PLC, STANDARD LIFE PLC, YOUGOV LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SPDR GOLD TRUST, COMMODITY EXCHANGE OF NEW YORK

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

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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.

CORPORATES
T ROWE PRICE GROUP INCORPORATED

Spooked investors see local bond yields drop to record lows

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Original article by Mark Mulligan
The Australian Financial Review – Page: 11 & 24 : 8-Jan-15

The yield on 10-year Australian government bonds reached a record low of 2.65 per cent on 7 January 2015. Bond yields in Europe and the US have also fallen sharply amid a growing trend for investors to shun equities in favour of assets that offer lower risk. Charlie Jamieson of Jamieson Coote Bonds notes that Australian bonds remain appealing to global investors due to a relatively high yield and their "AAA" credit rating

CORPORATES
JAMIESONCOOTEBONDS PTY LTD, EUROPEAN CENTRAL BANK, ARDEA INVESTMENT MANAGEMENT PTY LTD, FIDELITY WORLDWIDE INVESTMENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD, CREDIT SUISSE AG

Property curbs pave way for RBA rate cuts

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 11-Dec-14

Martin Whetton of the ANZ Bank says the decision to implement measures aimed at curbing growth in loans for investment properties could lead a reduction in the cash rate. The bond market had anticipated such action by the Australian Prudential Regulation Authority, with the 10-year bond rate falling below three per cent and the three-year bond rate easing to 2.27 per cent

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COUNCIL OF FINANCIAL REGULATORS, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TRIPLE T CONSULTING LIMITED

Australian rally on Fed statements could be short-lived

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Original article by Sally Rose
The Australian Financial Review – Page: 13 and 22 : 20-Jun-14

Australia’s S&P/ASX 200 rose by 1.6 per cent on 19 June 2014, and the All Ordinaries Index was up 1.5 per cent. The bullish sentiment was prompted by indications that US interest rates are set to remain at a historic low in the near-term. Meanwhile, the Australian dollar rose to $US0.9423 and the yield on 10-year government bonds fell by two per cent. George Clapham of Arnhem Investment Management cautions that economic data in China will remain the key influence on the Australian sharemarket

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ARNHEM INVESTMENT MANAGEMENT PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, WILSON HTM LIMITED, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK