Australian 10-year government bonds
extended gains as drops in German notes boosted concern that debt crisis may
hit also region's biggest economy. Australian 3-year yield declined by 83 bp reaching
3.05%, the biggest drop since 2008 while 10-year borrowing rate plunged to
3.806%. Matthew Johnson, UBS AG's strategist in Sydney said,
investors are interested in diversifying their investments amid European
uncertainty and Australian bonds are good option.