No "reasonable" seller of April 2024 bond at RBA's QE

By Sophia Rodrigues

Published On 08 Nov 2021 , 06:39 PM

The 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

RBA to buy AGS for second straight day

The RBA has announced bond-buying via auction for the second consecutive day, keeping the notified amount unchanged a...

Published on : 06 Aug 2020 , 11:42 AM
Weighted average yield at RBA's 2023 bond-buying 0.2575%

The RBA bought A$500 million of 5.5% April 2023 Australian government bonds on Wednesday at a cut-off of 0.2525% and...

Published on : 06 Aug 2020 , 09:02 AM
RBA buying only A$500m of one bond line -- April 2023

The RBA is buying A$500 million of April 2023 government bonds as part of its bond-buying program which it resumed We...

Published on : 05 Aug 2020 , 12:45 PM
AOFM raises A$15B from sale via syndication of new 2051 bond

The Australian government has raised $15 billion from the sale of the new 1.75% June 2051 bond via syndication,...

Published on : 28 Jul 2020 , 11:58 AM
Australia's 2030 bond syndication record likely unbeaten

It appears Australia's A$19 billion debt syndication for the 2030 bond in May will remain a record, with whi...

Published on : 14 Jul 2020 , 10:46 AM
Could we have another record Australia debt syndication?

There is a possibility of a new record for Australia's debt issuance after the 21 November 2025 bond attract...

Published on : 14 Jul 2020 , 10:22 AM
AOFM gets order of over A$48.8B for 2025 syndication

The Australian governmen's 21 November 2025 bond has attracted order book of over A$48.8 billion, around 30...

Published on : 14 Jul 2020 , 09:07 AM
AOFM issue guidance for new issuance in 2020-21

AOFM issues guidance for new issuance in 2020-21 that will apply until the 2020-21 federal budget is handed down...

Published on : 03 Jul 2020 , 12:18 PM
AOFM issues A$2.0B of Nov 2024 bond at 0.3654%

The AOFM has sold A$2.0 billion of 0.25% November 2024 government bond at a weighted average issue yield of 0.36...

Published on : 03 Jul 2020 , 11:23 AM
AOFM sells Nov 2028 bond at 0.7959%

The AOFM sold A$2.0 billion of 2.75% November 2028 government bond at a weighted average yield of 0.7959%. ...

Published on : 01 Jul 2020 , 11:09 AM