Australian Bonds Stand Out Globally: Goldman Sachs

Benjamin Purvis and Candice Zachariahs, AFR

In a world of negative interest rates, the couple of per cent you get for owning Australian bonds looks pretty appealing, according to Goldman Sachs Asset Management.

With almost a third of sovereign debt globally yielding less than zero, Australia’s positive benchmark rates and economic growth will probably support investor appetite for both the nation’s bonds and currency, said Philip Moffitt, the money manager’s head of Asia-Pacific fixed income. The prospect of further Reserve Bank of Australia monetary easing also makes the securities more attractive than those of the US, where policy is being tightened, he said.

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