It’s the sovereign rating the MSM trumpeted ceaselessly since the GFC but, now it’s on the chopping block, that no longer matters! David Uren leads off the denial:
World financial markets are ignoring the credit rating agencies with bond yields tumbling despite the biggest run of credit downgrades since the global financial crisis and a widespread deterioration in budget positions.
Australian government 10-year bonds were trading at yields of just 1.87 per cent last Thursday and Friday, despite S&P Global’s warning that investors could not count on Australia retaining its AAA credit rating for more than six months. The long-term bond yield has fallen an astounding 43 basis points in just six weeks.
