Australia’s 10-year bond rate has dropped to a record low of 1.76 per cent, with the steep fall over the last few months expected to signal interest cuts.

The Reserve Bank of Australia is expected to cut interest rates in an attempt to boost the economy.

Institutional Fixed Income Head at Fiig Securities Mark Bayley tells Ross Greenwood there is a weakening global economy.

“There has been a substantial slow down in global growth… which is really what has driven those yields down.

“Domestically, probably the key driver there is obviously the change in the RBA stance from expecting to hike, to saying it’s much more balanced.”

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