Australian Bonds

[CanOz]

Good morning folks...well its morning here anyway..

I need some opinions on how one would go about investing/trading in Australian bonds so i figured we could share any info that we found through a thread on it.

Thinking that Aussie rates will drop dramatically over the next few years, what is the best way to benefit from the increasing bond prices? Which bond would be the best bet? Do i actually buy the bond or could i look at bond futures?

Are there any Aussie ETFs that i could consider?

I really have no clue about bond plays But many people would realize that we could be on the cusp of a bull market in Australian bonds...

CanOz

[prawn_86]

Look at FIIG. They offer quite a lot of info about various fixed interest products here in Aus

[hesking1]

There are a (very) few listed corporate bonds. Better bet might be interest rate securities: http://www.asx.com.au/asx/markets/in...urityPrices.do. Australia actually has a very immature secondary debt market.

There are some ETFs such as Vanguard govt bond index (ticker: VGB). See https://www.vanguardinvestments.com....tailVAGBIE.jsp.

[Reaperman77]

If you're really lazy like me Aberdeen does some good managed bond funds.

[CanOz]

I really like ETFs, because i can find a nice little place to enter the trade. Can't find that bloody ETF on my list of ASX ETFs though....strange...

Thanks for all the reply's folks.

CanOz

[McLovin]

The RBA offers a retail bond facility which allows you to purchase up to $250k/day, in $1k increments.

http://www.rba.gov.au/fin-services/bond-facility/

[sinner]

Hey Canoz, they're the iShares series, IAF, IGB, ILB trading on the ASX.

Good luck, I'm not a credit bull from here by any stretch.

[Timmy]

Yo, Bond traders ...

Aus yield curve - what's happening here?

bonds.png





http://www.bloomberg.com/markets/rat...nds/australia/

[sinner]

Yo, Bond traders ...

Aus yield curve - what's happening here?

Not a bond trader, but I did mention the whacky Aus credit market and related curves in the XAO threads a while back (start of the yearish). What you're showing is only today and yesterday, but it's been like that for a while!

What's happening? Creditors are demanding higher yield to loan money in the short end, very shaky. Especially considering down under we like to roll rather than repay

This is in the face of still very high demand from big 'savers' for 'short cash'.

I could conjecture on the impact on XAO but won't go there for this thread.

For fun, plot the 90 day Aus Gov Bill minus 90day AUDLIBOR/interbank. Or just measure the term structure of 90 day AUDLIBOR expiring out each month.

[McLovin]

Yo, Bond traders ...

Aus yield curve - what's happening here?

bonds.png





http://www.bloomberg.com/markets/rat...nds/australia/

It's a curve anticipating recession. It's been like that a while (6-8 months).