Tony Morriss News
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Foreign investors cut their holdings of Australian government securities to the lowest level in almost two years, as an improving global outlook damped demand for the safety of the top-rated debt.
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The Australian dollar traded near a five-week low as concern global growth may falter and speculation the central bank will temper the pace of future interest-rate increases damped demand for riskier assets.
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The Australian dollar jumped to a two-week high against the greenback as the nation added three times as many workers in June as economists estimated.
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Treasury 10-year notes fell for a third day, the longest streak in five weeks, as stocks gained globally on optimism European leaders are intensifying efforts to contain the region’s debt crisis.
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Slowing economic growth in China is turning into good news for investors in Australia’s government bonds, as benchmark yields drop to the lowest level compared with New Zealand debt in 18 months.
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The euro climbed against the yen and the dollar on speculation European Central Bank President Jean- Claude Trichet will signal today that policy makers intend to raise interest rates as soon as next month.
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Yields on Australia’s benchmark bonds are poised for the longest stretch of monthly declines in 20 years as slowdowns in the U.S. and Europe spur investors to seek the relative safety of sovereign debt.
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Australian bond yields tumbled to the lowest level in 20 months relative to U.S. Treasuries after central bank Governor Glenn Stevens indicated he’s willing to cut the developed world’s highest benchmark interest rate.
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The Australian dollar rose for a second day versus the U.S. currency as stocks advanced, boosting demand for higher-yielding assets.
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Treasury 10-year notes declined as Asian equities rose after Germany and France signaled a commitment to keeping Greece in the euro area, damping demand for the safest assets.
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