No "reasonable" seller of April 2024 bond at RBA's QE
By Sophia Rodrigues
Published On 08 Nov 2021 , 06:39 PMThe RBA's bond purchase program included the April 2024 government bond for the first time since it abandoned the yield target policy last week. But not a single bond was bought by the RBA. It is unlikely there were no offers, so the only likely explanation is there were no "reasonable" offers to sell.
Just a few days ago, the yield on the April 2024 bond rose sharply as market brought forward timing of RBA rate hike, and simultaneously expected the RBA to buy the bond to defend the yield target. As it turned out, the RBA dropped the target last week (November board meeting) and said it would buy the bond under its bond purchase program. The expectation was that there are many keen sellers in the market but the auction results show that may not be the case.
LATEST SNIPPETS
Headline from RBA's November MonPol Decision
From the RBA's November Monetary Policy Decision statement:
-Cuts cash rate target to 0.1% from 0.25%
RBA TFF drawdown steady since Sep 30 as bks await rate cut
Total amount drawdown from the RBA's Term Funding Facility has been unchanged for three straight weeks...
Published on : 30 Oct 2020 , 04:13 PMAustralia Note yields continue declining on expectation of 1bp ES rate
Yields fell further to new record lows at the AOFM weekly T-Note tenders as market factors in the possibili...
Published on : 29 Oct 2020 , 10:42 AMAustralia Note yield drop to new low ahead of RBA cuts
As expected, the yield on near-term T-Note fell to a new record low at today's AOFM's auction. The weighted a...
Published on : 22 Oct 2020 , 10:40 AMCould Australia Note Yield Drop to New Low at Auction?
Looking forward to the AOFM's weekly T-Note auctions later this morning. The record low weighted average yield fo...
Published on : 22 Oct 2020 , 10:09 AMRBA Kent's speech title
The title of RBA assistant governor Chris Kent's speech on Tuesday is a very interesting one, "The Sta...
Published on : 19 Oct 2020 , 08:19 PMAustralia Note yields drop to new low
Yields at AOFM's Treasury Note auctions dropped to new record low on ample liquidity and expectations of cut...
Published on : 01 Oct 2020 , 10:43 AMJust one investor buys entire A$2B of 2030 govt bond at tender
One bidder got the entire A$2.0 billion of the 1% December 2030 government bond at the tender today. The yield was 0....
Published on : 30 Sep 2020 , 11:20 AMRBA once again fails to get 3-year yield close to target
The RBA again made purchases totalling A$2 billion of the April 2023 and the April 2024 government bond but didn'...
Published on : 31 Aug 2020 , 04:17 PMRBA bond-buying outcome suggests more buying likely next week
The RBA made nearly equal purchases of the April 2023 government bond and the April 2024 but didn't manage to suf...
Published on : 27 Aug 2020 , 04:07 PM