Thursday, June 14, 2007

10 year bond yields

Here are the yields on 10 year government securities in various currencies:



Japan JYP 2%
Singapore SGD 3%
Germany DM 4.6%
Hong Kong HKD 5%
US USD 5.25
UK GBP 5.5%
Australia AUD 6.3%


Generally, we are in a low interest rate environment across the world (except for Australia and New Zealand).

For every 1% increase in the yield, the bond prices may fall about 8%.

As inflation is expected to increase in many cuntries, it is better to invest in the money market.

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