Australian Treasury 10-year bond
Australia Treasury 10-Year bond rises for a fifth consecutive day, a five-day rise of 1.1% [Implied Yield 2.788%] 25 May, 2018
NEWS BITES - BONDS
Australia Treasury 10-Year bond, has risen 11.10c (or 0.1%) to close at $A95.31. The bond advanced for a fifth consecutive day on Friday. The bond matures in 10 years; its yield to maturity has (YTM) decreased by 2.0 basis points from 2.81% to 2.788%.
|Price Change %||0.1||1.1||0.5||4.62||20.64|
|YTM change (%)||0.71||3.19||1.9||13.56|
|Maturity Date||May 21, 2028|
AUSTRALIA 10-YEAR BULLISH SIGNALS
+ The price increased 1.1% in the last week and 0.5% in the last month.
+ The 1.3% premium to 12-month low of $A94.05 against the 21.3% discount to high of $A121.14 suggests the decline might be bottoming.
AUSTRALIA 10-YEAR BEARISH SIGNALS
+ In the last three months the bond has hit a new 52-week low seven times, pointing to a significant downtrend.
+ The present value of $A1,000 (PV1000) invested one year ago in Australia 10-Year is $A794, for a capital loss of $A206.
+ The present value of AUD1,000 (PV1000) invested five years ago in Australia Treasury 10-Year is $A807, for a capital loss of $A193.
+ 5 years Multiplier in AUD = 0.807x
+ Compound Annual Growth Rate (CAGR) in AUD = -4.2%
Present Value of USD1,000 invested 5 years ago:
+ The present value of USD1,000 (PV1000) invested five years ago in Australia Treasury 10-Year is $US633, for a capital loss of $US367.
+ 5 years ago AUD 1 equalled USD 0.9644
+ 5 years Multiplier in USD = 0.633x
+ Compound Annual Growth Rate (CAGR) in USD = -8.7%
May 25, 2018: AUD 1 equals USD 0.7564
3.2 Low Performance Indicators:
|Description||Value||Rank In Market|
|Price/MAP50||0.98||In Bottom Quartile|
|Price/MAP200||0.91||In Bottom Quartile|
+ The 10-Year bond yield is ranked 19 out of 42 countries in the global sovereign bond index.
The table below shows today's 10-Year Bond Yield in %, current inflation rate in % and real rate of interest(%).
|Rank||Country||10-Yr Bond||Inflation||Real Rate|
|GDP (USD Billion)||1,205|
|GDP growth yoy (%)||2.4|
|Interest rate (%)||1.5|
|Inflation rate (%)||1.9|
|Public debt (USD) (billion)||400.9|
|Public debt per person (USD)||16,819|
|Total annual debt change (%)||0.5|
|Debt to GDP (%)||41.9|
|Budget Deficit to GDP (%)||1.9|
|CAD to GDP (%)||3.1|
|Unemployment rate (%)||5.5|
CREDIT RATING SUMMARY
|Rating Agency||Long Term||Foreign Currency||Description|
|S&P||AAA||Extremely strong capacity to meet financial commitments. Highest Rating.|
|FITCH||AAA||Highest credit quality: 'AAA' ratings denote the lowest expectation of default risk. This capacity is highly unlikely to be adversely affected by foreseeable events.|
|DAGONG||AA+||"AA" ratings denote expectations of very low default risk. It indicates that the issuer has a very strong capacity for payment of financial commitments. Although due to its relatively higher long-term risk, this capacity is not significantly vulnerable to any foreseeable event. The plus (+) sign shows relative standing within the major rating category.|