Government Bond Interest Rates since 1st January 2010.

Long term interest rates continue their downward trend, commenced in April 2010. One of the most interesting aspects of the interest rate curve is that June 2011 Government is currently trading at 4.43%. That is, the one year rate is slightly below the current cash rate. This has clear implications that the market does not expect interest rates to go up over the next 12 months.

Also interesting, is that the May 2013 Government Bond (green line) has gone from .85% above the June 2011 Bond, to currently .03% below. A flatter yield curve is probably indicative that growth predictions in the economy is likely to be restrained, consistent with UK and Europe looking to cut their deficit spending.