First, we need to strengthen the ability of receiving economies to access and absorb funds. This should be part of the broader effort to improve institutional quality. Second, EU allocation rules should be made as simple as possible.
Starting with the Australian government market, we see what should be a familiar story to many people here: a downward trend in yields since the global financial crisis (Graph 5). We have seen a slight uptick since the latter part of 2016. That uptick has been part of a global shift in yields.