Quote:
Originally Posted by Trevor 57
Ask ScoMo where he borrowed the $130billion from
|
I like how Trev overlooks Chairman Dan signing up to the Belt and Road initiative. Putting aside the hypocrisy the answer to the question is over time the government sells T-bonds, T-notes and other securities to the market, prints more money and can raise taxes to fund its spending. Australian bonds are well received, and that is because of the relative strength and the relative positive impression that markets have in relation to Australia
In the first round mid April the big banks bought up over 50% of the bonds offered. A further breakdown shows investment managers 25 per cent, hedge funds more than 17 per cent and central banks from other countries including China 5 per cent. The bonds pay a yield of 0.47 per cent, at the upper end of the marketed range.