As Australia’s dollar falls in part due to concerns over a growth slowdown in China, the country’s government bond yields are offering the smallest premium over their US counterparts in 11 months.
Bloomberg data shows Australia’s ten year Bond Yield was 3.16% on Friday, compared to 1.95% for 10-year US treasuries.
According to Bloomberg The gap touched 1.27 percentage points on May 14, the least since June 4 last year.
Australia’s Reserve Bank recently cut the cash rate to a record low of 2.75%.
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