Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| September 04, 2006 | | Interest rate fears damage government bond performance | Spread bets on Australian bond performance should short government bonds, as strong economic data could signal an interest rate hike in the future, futhering softening the Australian bond market. Take into account the ever-increasing likelihood of an Australian interest rate hike at the end of the year when spread betting on bond market performance. The Age reports on Australia's soft government bonds:
"Today's strong data reinforced market views that the Reserve
Bank could raise rates again, and you see the consequent impact on
bond yields," Commonwealth Bank fixed income strategist Adam
Donaldson said. | | |
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