B · Normal
[French bonds sold off, Australian pension funds bucked the trend and entered the market] On October 26, Australia's second largest pension fund continued to buy French government bonds, believing that the market had overreacted to France's financial difficulties and the prospect of the European Central Bank raising interest rates. Senior portfolio manager Jimmy Louca said the Australian Retirement Trust began increasing its holdings of 10-year French government bonds in September as French government bond yields climbed above 4.5%. French government bonds fell sharply in October, with the 10-year government bond yield rising to 5%, the highest since 2002. The fund then increased its buying efforts.
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