Reported 26 days ago
The Australian bond market is experiencing a significant decline in demand relative to supply, reaching a record low due to concerns over high debt issuance. The spread between 10-year swaps and bond futures has dropped to negative 14.75 basis points, the lowest since 1998, as the government plans to issue A$150 billion in bonds by June 2026, exceeding previous forecasts. This increasing supply is contributing to tighter spreads in the market.
Source: YAHOO