Bonds

[Aaron]

https://www.interest.co.nz/bonds/122...interest-rates
We think short end rates are too high, and too expensive. We think wholesale rates should fall back to where they were.

Not sure why bank economists dictate expected yields for investors.

What is inflation at the moment 6.7%?? That makes the current yields pretty shi*ty IMO.

Also not related to the article, but here is a trap for new beginners in the secondary bond market. I was wondering why the yields were so high on bonds just about to mature compared to the longer dated bonds.

I have since realised that the ASB commission on purchase of .07% is the same no matter the duration of the bond so don't forget to include the fee when working out your yield as it is much more significant over three months than say 3 years.

Another reason not to follow anything I say or do.