Australia's 10-year government bond now yields 60 basis points less than its US counterpart
|Westpac's rate cut call seems to have put a bid under Australian government bonds, leading to a drop in yields.
As of writing, the 10-year government bond yield is trading at 2.06 percent - down 60 basis points from the US 10-year treasury yield, which is currently seen at 2.66 percent.
The 10-year AU-US yield spread has dropped by 25 basis points this month and could slide even further in the near future, courtesy of the rising odds of an early RBA rate cut.
Westpac now expects the central bank to cut rates by 25 basis points in August and November.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.