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The Australian government is marketing a benchmark sale of notes due in April 2025 in what will be its third longest-maturity line of nominal bonds.
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Traders are adding to bets Australia’s central bank will repeat its emergency interest-rate cuts of 2008 as the economy falters and concern intensifies that U.S. and European debt burdens will derail global growth.
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Australian inflation-linked bonds are signaling that gains in consumer prices may slow more than the central bank is expecting as an export boom peaks.
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Australia’s banks boosted holdings of the nation’s state government bonds to a record in the fourth quarter as lenders prepare to meet new regulations aimed at making them more resilient.
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Bond sales by foreign borrowers in Australia are set for the slowest month in more than a year after global market turmoil helped push the discount for swapping the proceeds into U.S. dollars to the least since 2009.
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Australian inflation-linked bonds are losing to their U.S. counterparts for the first time since 2009 as the South Pacific nation’s mining boom wanes while the Federal Reserve ramps up stimulus.
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Australia’s central bank will offer contingency loans to lenders in a plan to help them meet global liquidity rules aimed at averting a repeat of the credit crisis.
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Australian benchmark government bond yields were 11 basis points from the lowest since 2009 on concern contagion from Europe’s debt crisis will undermine the national economy’s recovery.
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Australia’s government will sell a 15-year bond tomorrow, the first such sale since 1986, after a record rally in existing notes.
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Alumina Ltd. , Alcoa Inc.’s partner in Melbourne, may consider selling its first bonds in Australian dollars and take advantage of the currency swaps market where savings are almost double the 10-year average.