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As the global credit crisis continues to roll, it's little surprise that investors have been seeking shelter in the relative safety of government bonds.  As a result, the yields on these securities are sitting near their lowest levels of the last year. 

The largest collapse in yields by far has come in Australia (chart lower left) where the yield on its ten-year government bond has declined by nearly 200 basis points in the last four months.  When a commodity based economy like Australia sees this big of a collapse in its long-term interest rates, it's a signal that the last thing on investors' minds is inflation.

click to enlarge

Interest_rates_100908

Interest_rates_100908a

This article has 1 comment:

  •  
    Oct 09 09:13 PM
    who can i invest in Australia Government Bond?
    is ther etf that i can buy in the usa?
    Reply
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