Government Bonds provide an easy way to diversify into fixed interest

Commonwealth Government bonds can be traded in the same manner as Australian shares. They provide a simple way to diversify into a fixed interest security using an existing equities account.

They have the following features:

  • Diversification into an additional asset class and a secure, stable and reliable cash flow
  • Secure regular income – semi-annual coupon interest paid by the Australian Government
  • Fixed interest for the life of the investment
  • Liquidity – AGBs can be sold any time the ASX market is open
  • Easy to trade, in the same way you would buy shares, either online or over the phone

Lists of available Treasury Bonds and Treasury Indexed Bonds can be found on the ASX website.

You may also find A guide to Exchange-Traded Australian Government Bonds to be helpful.