Halister News

(Bloomberg) -- Australia’s first 30-year bond sale was a success both for the government and investors alike, Andrew Ticehurst, rate strategist at Nomura Sydney, says in an interview

• Large deal size of low duration for the market to absorb, yet solid supply is being met by strong demand: Ticehurst
• Wide range of bidding investors including central banks, hedge funds and real money accounts out of Japan: Ticehurst
• Australia 10/20 year bond curve has flattened since but is still steeper than U.S. curve
• Today’s bond issue offers diversification for investors and 3.27% outright yield is still very attractive: Ticehurst
• “If this sort of borrowing could be directed to infrastructure for job growth and productivity rather than current expenditure it would be an even better outcome,” says Ticehurst
• NOTE: AUD 10-yr yield erasing decline since Brexit vote