Australia Note yields continue declining on expectation of 1bp ES rate

By Sophia Rodrigues

Yields fell further to new record lows at the AOFM weekly T-Note tenders as market factors in the possibility of the RBA lowering interest rate on Exchange Settlement balances to 1bp from current 10bps.

The weighted average yield on February 26 Note fell to 0.0670% vs 0.0733% at the tender last week. The lowest accepted yield fell to a new low of 0.055% vs 0.0600%.

For the April 23 Note, the weighted average yield came at 0.777% versus 0.0872% for the May 21 Note last week. The record low accepted yield was 0.0600% vs 0.0800%.