Buy Australian Bonds, Sell the Currency: Morgan Stanley
- RBA will refrain from hiking for at least 6-12 months: Kushma
- ‘The cheapest it’s ever been to sell the Australian dollar’
Photographer: Brent Lewin/Bloomberg
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Australian bonds are a buy because the central bank will keep interest rates at a record low for at least the next six to 12 months, according to Morgan Stanley Investment Management Inc. The company is underweight the Aussie dollar for the same reason.
“The RBA is the furthest away from hiking rates amongst any industrialized countries,” Michael Kushma, chief investment officer for global fixed income, said in an interview in Singapore. “That could allow Australian bonds to continue to do well versus U.S. bonds and other Group-of-10 government bonds.’’