Recent US news says the Bond market is in a super Bubble and the US bond market could crash soon. However, even if that is true, the Australian bond market is quite the opposite.
The simple article here explains the mechanics of bond prices: http://ozstock.blogspot.com.au/2012/03/when-to-invest-in-bonds.html
Basically, the US interest rates have nowhere to go but UP - hence the US bonds may come DOWN. On the flip side, the Aussie interest rates is likely to go DOWN, hence the Aussie bonds should go UP.
So for Aussies who are tired of the stock market or want to diversify, especially their super, the bond market or Fixed Interest as we call it here, is still worth a look.
