Australian sovereign bonds surged on
Tuesday, pushing the 10-year bill yield down to record lows on investor concern
European governments may face credit rating reductions as last week's summit
did not provide enough short-term measures. The borrowing costs for 10-year
Australian bonds declined 9 b.p. or 0.09 p.p. reaching 3.79%, while yields on 3-year
notes tumbled 7 b.p. to 3.05%.