The 31-year bond went for 1.94%. That means the foreign and Australian investors who bought them (including Australian super funds) were prepared to accept less than the usual rate of inflation right through until 2051 in return for regular government-guaranteed interest cheques.
Investors who bought ten year bonds were prepared to accept only 0.92% per year, investors who bought five year bonds, only 0.40%.
What’s a bond?
Even bond traders find it hard to get a handle on what bonds are. In his novel Bombardiers, author Po Bronson writes a scene where a bond trader refuses to work any more and demands to see an actual bond, “any kind of bond”.
He tells his boss he can’t sell bonds “if he’s never seen one”.
Like many things that used to exist physically, they’re now mainly numbers on screens, but it helps to get a picture.
This one is a US 27-year bond from 1945.
The biggest part of the paper is a promise to repay the US$1000 it cost, in 27 years time.
The smaller rectangles are called coupons, and each year the owner can tear one off and take it in to get 2.5%.
If the owner wants to sell the bond to someone else (and bonds are traded all the time) it’ll be sold with one coupon missing after one year, two coupons missing after two years, and so on.
When rates fall, prices rise
The price of a bond will vary with what’s happening to interest rates. If they are falling, an existing bond, offering returns at old rates, will become more expensive and can be sold at a profit. If they go up, an existing bond will become worth less and have to be sold at a loss.
It leads to confusion. When bond rates fall, bond prices rise, and visa versa.
For half a decade now bond rates have been falling. They’ve fallen further during the COVID crisis, making bonds a doubly good investment. They offer superannuation funds and others certainty at a time when everything seems uncertain, and if rates continue to fall they increase in value.
It is an indictment of our times that so many investors want them. The government’s office of financial management is going to need to sell an extra $167 billion over the coming year. The rush to buy suggests it could sell more.
Don’t shake hands, don’t high-five, and definitely don’t hug.
We’ve been bombarded with these messages during the pandemic as a way to slow the spread of COVID-19, meaning we may not have hugged our friends and family in months.
This might be really hard for a lot of us, particularly if we live alone. This is because positive physical touch can make us feel good. It boosts levels of hormones and neurotransmitters that promote mental well-being, is involved in bonding, and can help reduce stress.
So how can we cope with a lack of touch?
Touch helps us bond
In humans, the hormone oxytocin is released during hugging, touching, andorgasm. Oxytocin also acts as a neuropeptide, which are small molecules used in brain communication.
Touch also helps reduce anxiety. When premature babies are held by their mothers, both infants and mothers show a decrease in cortisol, a hormone involved in the stress response.
Touch promotes mental well-being
In adults with advanced cancer, massages or simple touch can reduce pain and improve mood. Massage therapy has been shown to increase levels of dopamine, a neurotransmitter (one of the body’s chemical messengers) involved in satisfaction, motivation, and pleasure. Dopamine is even released when we anticipate pleasurable activities such as eating and sex.
Due to social distancing measures during the COVID-19 pandemic, we should be vigilant about the possible effects of a lack of physical touch, on mental health.
It is not ethical to experimentally deprive people of touch. Several studies have explored the impacts of naturally occurring reduced physical touch.
For example, living in institutional care and receiving reduced positive touch from caregivers is associated with cognitiveanddevelopmental delays in children. These delays can persist for many years after adoption.
Less physical touch has also been linked with a higher likelihood of aggressive behaviour. One study observed preschool children in playgrounds with their parents and peers, in both the US and France, and found that parents from the US touched their children less than French parents. It also found the children from the US displayed more aggressive behaviour towards their parents and peers, compared to preschoolers in France.
Another study observed adolescents from the US and France interacting with their peers. The American kids showed more aggressive verbal and physical behaviour than French adolescents, who engaged in more physical touch, although there may also be other factors that contribute to different levels of aggression in young people from different cultures.
Maintain touch where we can
We can maintain touch with the people we live with even if we are not getting our usual level of physical contact elsewhere. Making time for a hug with family members can even help with promoting positive mood during conflict. Hugging is associated with smaller decreases in positive emotions and can lessen the impact of negative emotions in times of conflict.
In children, positive touch is correlated with more self-control, happiness, and pro-social skills, which are behaviours intended to benefit others. People who received more affection in childhood behave more pro-socially in adulthood and also have more secure attachments, meaning they display more positive views of themselves, others, and relationships.
Military officials on Saturday, March 27, 2010, arrested 17 young men gathered for prayer in a town called Segenaite in southern Eritrea, Africa. The men are apparently Christian soldiers doing their compulsory national military service. They belong to various churches, reports Open Doors USA.
The men are being held in a Segenaite Police Station prison cell. It is not clear whether they will be moved to another of Eritrea’s detention centers.
These arrests bring to 28 the reported number of Christians arrested since the beginning of March for their refusal to stop worshiping outside of the government sanctioned Eritrean Orthodox, Catholic and Evangelical Lutheran churches.
Sources announced in February that approximately 2,200 Christians remain in prison for their refusal to stop practicing their faith outside of the government sanctioned religious groups. The figure is significantly lower than the figure released at the beginning of 2009. Sources explained to Open Doors that many of those released were let go because of poor health. Most were also released on very strict bail conditions. Additionally, many other Christians have been released only to be sent back to the military in anticipation of a renewed war with neighboring Ethiopia. At least 12 Christians have died while being incarcerated in Eritrean prison camps.
Eritrea is ranked No. 11 on this year’s Open Doors World Watch List of 50 countries which are the worst persecutors of Christians.
Open Doors recently received the translation of a letter from a pastor of an Eritrean church written to his wife from prison.
My dearest wife;
God, by His holy will, has prolonged my prison sentence to five years and four month. I very much long for the day that I will be reunited with you my dear wife, our children and God’s people in the church.
My dear, listen to me; not only as a wife, but also as a Christian woman who has come to understand who God is and how deep and mysterious His ways are. Yes! I love you, I love the children and I would love to be free in order to serve God. But, in here, God has made me not only a sufferer for His Name’s sake in a prison of this world over which Christ has won victory, but also a prisoner of His indescribable love and grace.
I am testing and experiencing the love and care of our Lord every day. When they first brought me to this prison, I had thoughts which were contrary to what the Bible says. I thought the devil had prevailed over the church and over me. I thought the work of the gospel in Eritrea was over. But it did not take one day for the Lord to show me that He is a sovereign God and that He is in control of all things – even here in prison.
The moment I entered my cell, one of the prisoners called me and said, ‘Pastor, come over here. Everyone in this cell is unsaved. You are very much needed here.’ So, on the same day I was put in prison, I carried on my spiritual work.
My dear, the longer I stay in here, the more I love my Savior and tell the people here about His goodness. His grace is enabling me to overcome the coldness and the longing that I feel for you and for our children. Sometimes I ask myself, ‘Am I out of my mind? Am I a fool?’ Well, isn’t that what the apostle had said, ‘Whether I am of sound mind or out of my mind, it is for the sake of Christ.’ (2 Cor. 5:13)
My most respected wife, I love you more than I can say. Please help the children understand that I am here as a prisoner of Christ for the greater cause of the gospel.
— From a pastor in bonds in Eritrea
An estimated 100 million Christians worldwide suffer interrogation, arrest and even death for their faith in Christ, with millions more facing discrimination and alienation. Open Doors supports and strengthens believers in the world’s most difficult areas through Bible and Christian literature distribution, leadership training and assistance, Christian community development, prayer and presence ministry and advocacy on behalf of suffering believers.