Australia Note yields drop to new low

By Sophia Rodrigues

Yields at AOFM's Treasury Note auctions dropped to new record low on ample liquidity and expectations of cut in the RBA's cash rate target.

Yield on January 2021 Note fell to 0.982% from 0.1% at the tender last week as the lowest accepted bid dropped to 0.085% compared with 0.1% last week.

 The July 2021 Note yield declined to 0.1153% versus 0.1211% last week. The lowest accept yield was 0.105%, same as last week but the highest fell to 0.125% from 0.13%

Both tenders saw strong demand with coverage ratio over five times.