What drove Aussie debt negative?

Friday, 11 December 2020

Australia’s Treasury Note tender saw a negative yield for the first time ever, thanks to demand from overseas investors looking for short-term instrument to park cash.

At the AOFM’s weekly tender on Thursday, the lowest accepted yield on the March 2021 T-Note was -0.01 per cent, compared with 0.01 per cent at the tender last week.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.