Suprising ann within the quarterly, the purchase of 5 mln in AU...

Suprising ann within the quarterly, the purchase of 5 mln in AU T bonds.

In search off more return on money than a bank acc or deposit it sounds like a logical step, though every-one familiar in the bond market will know it isn't...

In the huge sell off in equities the bond market declined as well. Save haven didn't appeal there based on the billions and billions money needed for economic recovery markets expecting a lot more T bonds will come into the market. So yields rose and bond prices declined.

If you believe economic recovery will take years, probably the Govt will issue a lot more bonds and bond prices will further weaken. If you believe this will be over soon, than we can expect a rapid recovery of equity markets. So in my humble opinion the bond market isn't a place to be in either case.

The benefit is very limited (interest and possibly some price increase). There VMC will need some of the money within 2 quarters it could be some bonds have to be sold at a loss, a loss which could be bigger than the interest received in that period. And suddenly a lower return on deposits doesn't sound that bad any-more.

And why should a 25 mln MC junior exploration company creates a 5 mln exposure to the govt, now political decisions can impacts the liquid assets of VMC. Never though I would be writing about the bond market in a VMC thread. I still hold, but acted accordingly.

Cheers