Bond Market

  • BHP raises $1 billion on local bond market AAP - Thu, Mar 19, 2015 7:35 PM AEDT
    BHP raises $1 billion on local bond market

    Mining giant BHP Billiton has raised $1 billion in debt on the local bond market. It comes a day after fellow iron ore miner Fortescue Metals Group abandoned its plans to raise $US2.5 billion ($A3.28 billion) of debt on the US bond market. BHP said it had launched a $1 billion five-year bond raising and the Australian dollar notes would pay interest at 3.00 per cent and mature in March 2020.

  • US court ruling closes avenue for Argentine debt payments AFP - Fri, Mar 13, 2015 1:39 AM AEDT
    US court ruling closes avenue for Argentine debt payments

    A US judge prohibited Citibank from handling payments on Argentine bonds issued under Argentine law Thursday, adding a new challenge in the country's bitter debt fight with US hedge funds. US District Judge Thomas Griesa in New York rejected the bank's request to process the payments, saying they would violate his ruling last year that Argentina must first pay off hedge funds on the bonds they hold before it can pay other creditors. The decision marks a fresh setback for Buenos Aires in its long-running US legal battle against NML Capital and Aurelius Capital Management, the bondholders it labels "vultures" seeking to capitalize on its 2001 default.

  • US judge blocks Citi handling of Argentina debt payments AFP - Thu, Mar 12, 2015 8:43 PM AEDT
    US judge blocks Citi handling of Argentina debt payments

    A US judge on Thursday prohibited Citigroup from handling payments on Argentine bonds issued under Argentina law, adding a new challenge in the country's bitter debt fight with US hedge funds. Judge Thomas Griesa of the district federal court in New York rejected the US bank's request to process the payments, saying they would violate his ruling last year that Argentina must first pay off hedge funds on the bonds they hold before it can pay other creditors.

  • ECB says buys 9.8 bn euros in bonds in 3 days AFP - Thu, Mar 12, 2015 1:53 PM AEDT
    ECB says buys 9.8 bn euros in bonds in 3 days

    The ECB has bought 9.8 billion euros ($10.4 billion) in eurozone bonds in the first three days of its programme to ward off deflation and stimulate growth, a senior official said Thursday. "We have already bought 9.8 billion euros in bonds in three days" said Benoit Coeure, a member of the European Central Bank's executive board said at a symposium in Paris. He said the ECB was on "precisely the right path" to attain its objective of buying 60 billion euros of eurozone government and corporate bonds a month. The ECB has embarked on a policy of so-called quantitative easing or QE, under which it plans to buy 1.14 trillion euros worth of bonds off banks and investors over the next 18 months.

  • German, Italian and Spanish government bond yields hit new lows AFP - Tue, Mar 10, 2015 12:05 PM AEDT
    German, Italian and Spanish government bond yields hit new lows

    The yield on German, Italian and Spanish 10-year government bonds fell to new record lows on Tuesday, the day after the ECB began a massive bond-buying programme to ward off deflation in the eurozone. The rate of return to investors on 10-year German government bonds fell to 0.279 percent from 0.312 percent on Monday. The yield on 10-year Italian government bonds fell to 1.220 percent from 1.280 percent and those of Spain to 1.231 percent from 1.275 percent. The European Central Bank launched on Monday a so-called quantitative easing (QE) programme that will see it buy 60 billion euros of eurozone government and corporate bonds through next September.

  • On 'QE' day, ECB launches new bond-buying AAP - Tue, Mar 10, 2015 11:01 AM AEDT

    The European Central Bank has set out on its massive bond purchase program, its most audacious scheme yet to ward off deflation and stimulate growth in the single currency area. The ECB's scheme, known as quantitative easing or QE, is not new, and has already been used by the US Federal Reserve and the Bank of England to stimulate their respective economies. The ECB hopes that by buying bonds off investors they will invest the money elsewhere, thus boosting growth and preventing a dangerous cycle of falling prices from setting in. ECB chief Mario Draghi announced the 18-month plan to buy at least 1.14-trillion-euro ($A1.61 trillion) in bonds, at a rate of 60 billion euros per month, back in January.

  • Bond market firms as ECB stimulus starts AAP - Tue, Mar 10, 2015 8:39 AM AEDT

    The start of the European Central Bank's stimulus program has strengthened the bond market. The Australian market firmed in line with US Treasuries as the ECB's 1.1 trillion euro ($A1.55 trillion) bond-buying ...

  • Bond market weakens on US jobs figures AAP - Mon, Mar 9, 2015 8:46 AM AEDT

    The bond market has weakened after strong US jobs data convinced economists American interest rates will rise mid-year. Local futures prices weakened in line with US Treasuries after Labor Department data ...

  • Bond yields hit new record lows as ECB purchases near AFP - Fri, Mar 6, 2015 11:07 AM AEDT
    Bond yields hit new record lows as ECB purchases near

    Yields on bonds of southern eurozone countries touched record lows in secondary trading Friday, a day before the ECB is slated to begin 60 billion euros ($66 billion) in monthly purchases. The ECB on Thursday announced it would begin on Monday its massive stimulus programme to ward off the threat of deflation, but which will push down investor returns on government debt as competition to buy bonds heats up. In early trading on Friday the rate of return to investors on 10-year Italian bonds fell to a new record low of 1.259 percent, breaking the record it set Thursday after the ECB's announcement. The yield on 10-year Spanish bonds hit a record low of 1.234 percent and the return on 10-year Portugese debt struck 1.663 percent.

  • Aust bond futures prices strengthen AAP - Fri, Mar 6, 2015 9:07 AM AEDT

    Australian bond futures prices are slightly higher after the European Central Bank announced the details of its bond buying program. The ECB said it would begin a 1.1 trillion euro ($A1.56 trillion) bond ...

  • GDF Suez in 2.5-bn-euro bond issue, including rare zero-coupon bond AFP - Thu, Mar 5, 2015 1:12 AM AEDT
    GDF Suez in 2.5-bn-euro bond issue, including rare zero-coupon bond

    French energy giant GDF Suez said it sold four tranches of debt Wednesday for a total value of 2.5 billion euros ($2.7 billion), including a rare zero-coupon bond. "The coupons for each tranche are the lowest obtained by GDF Suez at these maturities in euros. In particular, the two-year tranche bears a zero-percent coupon," the group said in a statement. The Wall Street Journal called the launch of the zero-coupon two-year bond "a true rarity" and said GDF Suez was the first company in over 14 years to issue bonds in euros offering no regular payments to investors.

  • US court demands info on new Argentina bond issue AFP - Thu, Feb 26, 2015 8:24 PM AEDT
    US court demands info on new Argentina bond issue

    The New York judge in charge of Argentina's debt dispute with two large hedge funds demanded information Thursday on a new $2 billion bond issue by the country. New York federal district court judge Thomas Griesa told Deutsche Bank and JPMorgan Chase, reported to be assisting in the bond sale, to immediately provide information on the bonds to NML Capital, one of the two hedge funds. Bloomberg News reported earlier that the country, currently in default on some of its international debt, is seeking to raise funds to pay $6.3 billion it owes creditors in October. The bonds are being marketed privately, and could be issued under Argentina local law, rather than US or European law like most of the country's foreign debt.

  • Aust bond prices rally on Yellen testimony AAP - Wed, Feb 25, 2015 5:16 PM AEDT

    Australian bond futures prices have rallied after the head of the US Federal Reserve gave no indication on whether the central bank would start hiking rates in June. At 1630 AEDT on Wednesday, the March 2015 10-year bond futures contract was trading at 97.540 (implying a yield of 2.460 per cent), up from 97.495 (2.505 per cent) on Tuesday. The March 2015 three-year bond futures contract was at 98.160 (1.840 per cent), up from 98.140 (1.860 per cent).

  • Bond futures prices lower AAP - Mon, Feb 16, 2015 5:00 PM AEDT

    Bond futures prices are lower amid optimism about the eurozone economy and Greek debt negotiations. Stronger than expected eurozone economic growth figures have boosted risk appetite, with investors abandoning ...

  • Aust bonds fimer despite early fall AAP - Fri, Feb 13, 2015 5:03 PM AEDT

    The bond market is firmer despite initially falling on the back of positive comments about the economy by the Reserve Bank governor. UBS interest rate strategist Matthew Johnson said there was a move out of shorter dated bonds when Glenn Stevens appeared upbeat about the strength of the labour market in testimony to parliament. Bond futures prices received some support later in the day after a $600 million Commonwealth government bond auction, but the main reason for the late rally was buying ahead of the weekend, Mr Johnson said. "It was a good (bond auction) result but not enough to cause the size of he rally that we've seen," he said.

  • Aust bonds regain overnight losses AAP - Tue, Feb 10, 2015 4:52 PM AEDT

    The Australian bond market gave up some ground overnight but has since pared back its losses thanks to continuing overseas demand for triple-A rated Commonwealth government securities. Nomura head of macro products Jon Linton said Australian bond futures have been tracking overseas bonds in recent overnight sessions only to gain ground during the local session. "What we're seeing again today is a reasonable level of support for Australian government bonds, they've pared back some of the losses made overnight, so we're off the lowest levels which we reached this morning," he said. Mr Linton said expectations that the Reserve Bank's cash rate will fall to at least two per cent are also giving three year bond futures yields support when they reach that level.

  • Aust bond futures prices surge AAP - Thu, Feb 5, 2015 9:19 AM AEDT

    Australian bond futures prices are higher as falling oil prices dampen risk appetite. Bond prices were initially weaker overnight following encouraging economic data out of Europe and the US, and a stimulus ...

  • Greece pays higher rate in new govt's first bond sale AFP - Wed, Feb 4, 2015 11:41 AM AEDT
    Greece pays higher rate in new govt's first bond sale

    The new Greek government held its first bond auction since taking office on Wednesday, raising 812.5 million euros in six-month treasury bills on a higher rate than last month. The sale, which is being closely watched as an indication of investor confidence in the new Athens government, attracted less interest than previously. Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis are this week visiting EU leaders and officials at the European Central Bank to seek support for their bid to renegotiate Greece's mountain of debt and end austerity.

  • Has 'Japanification' hit German bunds? CNBC - Wed, Feb 4, 2015 2:18 AM AEDT
    Has 'Japanification' hit German bunds?

    The yield on Japan's benchmark bond has risen above its German equivalent for the first time, sparking fears that Europe was stick in slow growth.

  • Greece gets creative in bid to ease debt burden AFP - Tue, Feb 3, 2015 7:41 PM AEDT
    Greece gets creative in bid to ease debt burden

    "If we need to use euphemisms and tools of financial mechanisms to get Greece out of its debt-slavery, we will do it," Finance Minister Yanis Varoufakis said Tuesday. According to an interview with the Financial Times published Tuesday, Varoufakis proposes to replace 25 billion euros in Greek bonds owned by the European Central Bank (ECB) with "perpetual bonds", which have no set maturity or expiration date. Under the scheme, the central bank in Frankfurt would neither suffer losses on its Greek debt, nor have to declare Athens in default -- avoiding dramatic market turbulence that would erupt if Greece were unable to honour matured bonds.

  • S&P to pay $1.37 bn to resolve mortgage crisis lawsuits AFP - Tue, Feb 3, 2015 2:56 PM AEDT
    S&P to pay $1.37 bn to resolve mortgage crisis lawsuits

    US rating firm Standard & Poor's said Tuesday it had agreed to pay $1.37 billion to settle lawsuits that it overrated mortgage bonds at the heart of the "subprime" housing crisis. S&P said it had not admitted to any legal violations in the settlements, which resolve 2013 lawsuits filed by the US Department of Justice, 19 states and the District of Columbia. Under a separate settlement with California pension fund CalPERS over mortgage deals, the company will pay $125 million. S&P said it would pay $687.5 million to the Justice Department and $687.5 million to the states and Washington, DC.

  • Why Treasury yields can't arrest the freefall CNBC - Mon, Feb 2, 2015 10:40 AM AEDT
    Why Treasury yields can't arrest the freefall

    The fall in longer term U.S. Treasury yields is a side effect of funds fleeing low yields elsewhere, say analysts.

  • Power Play: Betting on bonds CNBC - Fri, Jan 30, 2015 5:03 AM AEDT
    Power Play: Betting on bonds

    Two market strategists betting on bonds in a volatile stock market.

  • Record bond prices as RBA expected to cut AAP - Thu, Jan 29, 2015 4:58 PM AEDT

    Australian bond prices have hit record highs amid growing expectations that the Reserve Bank will cut the cash rate to a new record low next week. The market is now pricing in a two in three chance that the RBA will cut the cash rate from 2.5 per cent to a new low on February 3. "Bonds are all the rage at the moment," UBS interest rate strategist Andrew Lilley said. "These are the lowest yields on most bonds across the curve since Australia established its bond market.

  • 8 Tips for Bond Investors Watching Rising Rates U.S.News & World Report - Sat, Jan 24, 2015 5:24 AM AEDT

    Interest rates will rise. As the economy improves, the Federal Reserve gets closer to raising interest rates. U.S. News contributors and Smarter Investor bloggers share their tips on how to rebalance your bond portfolio in preparation for rising rates. Consider buying a bond fund.

  • Treasury prices whipsaw after ECB announcement CNBC - Fri, Jan 23, 2015 6:25 AM AEDT

    US yields fell in volatile trading on Thursday after the European Central Bank unveiled a more aggressive than expected bond-buying program.

  • Are Europe's low bond yields a bargain? CNBC - Thu, Jan 22, 2015 9:43 AM AEDT
    Are Europe's low bond yields a bargain?

    With quantitative easing on the cards, Europe's already low interest rates are set to fall further, but some fund managers believe the continent will offer the best bond returns.

  • Bonds firm on stimulus hopes AAP - Thu, Jan 22, 2015 9:34 AM AEDT

    St George senior economist Janu Chan said overseas equities and local bond futures were strengthened by reports the European Central Bank's new bond buying programs could be as large as $US50 billion euros ($A61.7 billion) per month. "Additionally, the Bank of Canada surprised markets by cutting rates by 25 basis points, indicating that central banks around the world are still turning on the monetary stimulus taps," she said. At 0830 AEDT on Thursday, the March 2015 10-year bond futures contract was trading at 97.465 (implying a yield of 2.535 per cent), up from 97.440 (2.560 per cent) on Wednesday. The March 2015 three-year bond futures contract was at 97.970 (2.030 per cent), up from 97.920 (2.080 per cent).

  • Long bond prices gain, ECB meeting in focus CNBC - Thu, Jan 22, 2015 2:14 AM AEDT

    U.S. government debt prices climbed on Tuesday as investors waited to see if the ECB will announce a stimulus package on Thursday.

  • How to get your bonds ready for a Fed rate hike CNBC - Tue, Jan 20, 2015 11:17 PM AEDT
    How to get your bonds ready for a Fed rate hike

    There are ways investors can diversify holdings in preparation for rising bond yields later this year. Options include floating-rate and value funds.

  • Better China data weigh on Aust bonds AAP - Tue, Jan 20, 2015 5:10 PM AEDT

    Australian bond futures prices are lower following better than expected Chinese data and a switch back to risky assets in the wake of last week's Swiss central bank announcement. Bonds were also weaker in the wake of the Swiss National Bank's decision to end its three-year bid to artificially hold down the value of its currency against the euro. "Post the SNB panic, people are going back to risky assets and that helps bonds to sell off," he said. At 1630 AEDT on Tuesday, the March 2015 10-year bond futures contract was trading at 97.375 (implying a yield of 2.625 per cent), down from 97.405 (2.595 per cent) on Monday.

  • Forget US bonds, this is the play now: Pimco CIO CNBC - Sat, Jan 17, 2015 8:22 AM AEDT
    Forget US bonds, this is the play now: Pimco CIO

    As economic trends indicate the 10-year and other U.S. Treasurys could tank even lower, Pimco has shied away from U.S. bonds.

  • Analysts divided over ECB's need to act AAP - Fri, Jan 16, 2015 9:01 AM AEDT

    With the eurozone facing the possibility of years-long economic stagnation, its central bank is expected to soon announce its biggest stimulus measure yet. They question the merits - and even see dangers - in the new stimulus program, which would involve the large-scale buying of government bonds. European Central Bank president Mario Draghi is facing unusually outspoken opposition from a minority on his 25-member board ahead of what's expected to be a showdown policy meeting January 22. Under the new stimulus being considered, the central bank would buy governments bonds from banks with newly created money.

  • Aust bonds firm ahead US jobs data AAP - Fri, Jan 9, 2015 4:42 PM AEDT

    Australian bond futures prices are firm ahead of the release of important US jobs data. There has been little movement in prices as investors prepare to take on more risk. RBC Capital markets fixed income ...

  • Risk appetite weighs on Aust bond prices AAP - Thu, Jan 8, 2015 9:22 AM AEDT

    Australian bond futures prices are mixed following a resurgence of risk appetite overnight. Better-than-expected US economic figures and stronger share markets were weighing on bond prices following their ...