Abbey National and Invesco prefer the US bond market to the national debt of dollar bloc countries s...
Abbey National and Invesco prefer the US bond market to the national debt of dollar bloc countries such as New Zealand, Canada and Australia, says Ken Robertson, investment manager on Abbey National's fixed interest desk. "On a prima facie view there is no overwhelming reason to be involved in the New Zealand and Australian bond markets." New Zealand's 10-year bond rate of 6.63% is higher than the US Treasury equivalent rate of 5.92%, or the Federal fund rate of 6.5%. Robertson says this is because the New Zealand market is thinner and less liquid, making it easy to get into the market bu...
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