Australian bond yields rallied on anticipation of a rate rise. At the time of writing (3 May 2006) the Reserve Bank of Australia (RBA) had lifted its benchmark rate to 5.75% from 5.5%.

International equity returns suffer as the Australian dollar rallies

Unhedged international equities (-3.3%) suffered as the Australian dollar rose against the US dollar (+6.0%), UK pound (+4.5%), Euro (+3.9%) and the Japanese Yen (+3.2%). Hedged international equities returned 0.9% in April.

Australian equities continue to advance

The resources sector continued to dominate the Australian market. Investors' continue to demonstrate a high appetite for risk and a willingness to bid up cyclical stocks

Australian and international property securities decline on higher bond yields

Listed property securities in Australia and internationally delivered more modest growth as fixed interest yields rallied, increasing the cost of borrowing for trusts.