Record Aussie Bond Sales Boom Dented by Iran War, Rising Yields

Australia’s market for bond sales is trailing US and European peers since the start of the Iran war, as the conflict stokes inflation and pushes local borrowing costs to some of the highest in the developed world.

Sales in the Aussie-dollar syndicated bond market — a key yield source for Asia Pacific debt investors — have tumbled about 62% since the war began on Feb. 28, versus a year earlier, Bloomberg-compiled data show, denting a record start to the year. By contrast, US investment-grade issuance has jumped by a similar margin over the same period as borrowers seized on last week’s market reopening.