Blog Post 7 | 21st April
2015
Even more signals for lower interest
rates
The spread on 3 year Commonwealth
Government Securities (CGS) and 2 year CGS has widened to 5 basis points; 1.82
per cent and 1.87 percent respectively as at 20th April 2015.
This indicates that fund managers prefer 3 year bonds to 2 year bonds as they
foresee the cash rate being lower for longer on the back of Australian economic
conditions continuing to deteriorate.