Forex Flash: Speculation on further demand for Australian bonds a ‘cap that fits' -

[John Starks]

FXstreet.com (Barcelona) - According to NAB research team, there is still plenty of commentary about renewed risk to the UK’s AAA sovereign status as a result of endemic economic weakness.

 

As reported by NAB in a morning note: "The UK AAA debate is of course relevant for Australia, where, in the wake of yesterday’s ratings warnings by Moody’s against Germany, the Netherlands and Luxembourg, now the increased risks to the UK’s AAA status inevitably draws even closer attention to the stability of Australia’s AAA status."

 

NAB adds: "We can well imagine that amid the rising risk of falling sovereign ratings elsewhere, the speculation of a further increase in demand for Australian bonds is going to be a ‘cap that fits’ - for the time being at least.