Guess Who's Paying 2.87% On Their Debt

Guess Who's Paying 2.87% On Their Debt? We all are. At first that might raise an eyebrow, many investors who have borrowing against their assets will immediately know that their rate of interest is probably much higher. How am I paying 2.87% you might ask. Here's the answer. The Australian taxpayer though, as represented through the Australian Office of Financial Management has managed to raise $4.25bn this week at 2.865% for a 20 year loan term. This is the lowest rate ever for long-term Australian debt, according to the Sydney Morning Herald. To put this rate into context, Australia raised $7bn in October over 22 years at a rate of 3.945%. Low interest rates are a function of sluggish growth and expectations that Australia's short term growth prospects will be below trend. More here: (VIEW LINK)