Australian Retirement Trust Buys 10-Year French Bonds as Yields Hit 5%
Updated
Updated · Bloomberg · Oct 26
Australian Retirement Trust Buys 10-Year French Bonds as Yields Hit 5%
1 articles · Updated · Bloomberg · Oct 26
Summary
Australian Retirement Trust has been adding 10-year French government bonds since September and increased purchases during October's selloff, senior portfolio manager Jimmy Louca said.
Yields climbed past 4.5% and then to 5%—the highest since 2002—as investors dumped French debt on fears over fiscal credibility, political instability and possible European Central Bank rate hikes.
The fund, Australia's second-largest pension manager, is betting that market pricing has overshot France's fiscal risks and the outlook for tighter ECB policy.