Government Bonds and Inflation Linked Bonds

[Bill M]

There has been so much written about all this but where are the offers? When can the retail investor get set on them? I mean we have the stimulus to pay for and the new National Broadband Network to pay for but so far zip, nothing. Some commentary went as far as saying we will be flooded by such offers, why aren't they here? Is it going to happen? Anyone have any clues?

 

[tothemax6]

Bringing up this old thread because its appropriate to my question:
How does one buy gov bonds? My understanding is that in a crash, government bonds rally. Being able to buy these would thus be a good contingency plan if one thinks a crash is approaching.

 

[Judd]

I understand that they Sydney Airport inflation linked bonds are sold by an Over The Counter arrangements in lots of $50k. So a retail investor has to find a broker and even then some such as CBA and Rabo are only available to sophisticated investors, ie those with $500k in readies to plonk down. Same applies to

Thus, the little fella is always shafted and hasn't that always been the case?

You might try and contact this mob. I have nothing to do with them; just came across them after a google.

http://www.fiig.com.au/fixed-income/products/37/government-bonds.html

 

[mazzatelli]

My understanding is that in a crash, government bonds rally. Being able to buy these would thus be a good contingency plan if one thinks a crash is approaching.

Only as a short term hold, as a flight to safety.
Any longer, shifts in the yield curve affect the price - so in the event of a crash you think interest rates will fall?

 

[tothemax6]

Only as a short term hold, as a flight to safety.
Any longer, shifts in the yield curve affect the price - so in the event of a crash you think interest rates will fall?

This seems to be the current policy of central banks. If anything goes wrong, expand the monetary base, lowering the short-term interest rate. You generally get deflation following a crash as well, which boosts the value of bonds.

 

[tothemax6]

So no one knows where to buy this stuff? Treasury bills aren't a particularly exotic instrument...

 

[boofhead]

Depending on the money you got you can buy via links from the RBA site, http://www.rba.gov.au/fin-services/bond-facility/index.html has information.

You can buy via 3rd parties like FIIG.com.au (I read their weekly research information - this is not a recommendation to use them.)

 

[mazzatelli]

This seems to be the current policy of central banks. If anything goes wrong, expand the monetary base, lowering the short-term interest rate. You generally get deflation following a crash as well, which boosts the value of bonds.

Generally that is the case, but execution using US bonds at the moment don't provide a good r/r [interest rates already low].

 

[So_Cynical]

Exchange-traded Australian Government Bonds will start trading soon on the ASX

I reckon these will be popular, an alternative to a normal TD, directly Govt backed and paying good interest with some capital protection...surely these will find there way into every income portfolio.

I'm wondering why the coupon rate changes so often? ..The ASX has some good info.

http://www.asx.com.au/documents/products/List_of_AGBs.pdf

http://www.asx.com.au/products/agb.htm

https://www.moneysmart.gov.au/inves...ng-interest/bonds/australian-government-bonds
~

 

[Pager]

There is also exchange traded Bond funds that have been launched in the past 12 months, I did bit of research and thought for my SMSF this was a good addition, State Streets ETF, BOND which gives you exposure over a basket of government, semi government and corporate Bonds and tracks the S&P/ASX Australian Fixed Interest Index.

http://www.spdr.com.au/etf/fund/fund_detail_BOND.html