International Long-Term Government Bond Yields

With all the concerns over the health of the global financial system, we were somewhat surprised to see that Australia is the only country whose 10-year government bond yield is at its lowest level of the credit crisis.  It appears as though the prospect of bigger government deficits from the seemingly never ending stream of bailouts is trumping the flight to safety.  Will sovereign bonds be the next asset class to fall victim to the credit crisis?

   

  

  

 

Comments

[Robert]

I think you should russia up there. The are at junk status already. But the big money is going for germany or spain.

[dj]

Well it's a given that the us10 will be 4.25 this time next year and Rudd has made some very poor moves the last 2weeks Re: ozzie dollar getting killed. Harper has made some very good moves,so there 10y should stay under the usa bonds.