Bond Trading Conventions

acott · August 21st, 2003, 8:47 pm

So all the major fixed income markets (Gilts, Treasuries, Bunds, ) trade on price. But some of the smaller markets trade on a yield basis (although settlement is on price). South Africa is one of these.Anybody know of any other markets ? Finland and Australia are candidates - can anybody confirm? Any other suggestions?thanksDAvid

OzQuant · August 22nd, 2003, 1:35 am

Australia is traded in yield. Australian bond futures are quoted as 100 - yield, so if you see that Aussie 3yr bond futures are 95.25 on Bloomies, thats a yield of 4.75%

andym · August 22nd, 2003, 6:46 am

Sweden trades on yield. Finland, as far as I know, trades on price.

FDAXHunter · August 22nd, 2003, 6:49 am

acott: So all the major fixed income markets (Gilts, Treasuries, Bunds, ) trade on priceI dunno dude... swaps and FRAs trade on a yield basis the world over..... hehehehehe... so do depos... hehehehe

XKE · August 22nd, 2003, 6:57 am

There is of course that little Asian bond market.....Japanese Govt Bonds (JGBs) if you fancy simple yield.

mencey · August 22nd, 2003, 10:57 am

Dude, Now that you are entertained with yields, you should figure out if those yields are annual or semiannualFor instance swedish govies carry an annual coupon while south african, japanese and australian govies carry a semiannual coupon