RBA bond-buying fails to resolve 3-5yr steepening

By Sophia Rodrigues

Published On 03 Apr 2020 , 04:07 PM

The Reserve Bank of Australia's bond-buying auction today for the same amount and bonds as yesterday has resulted in mostly higher yields. This means the steepening in the 3-5yr part of the curve once again remains unresolved.

With the exception of April 2027 where the cut-off yield fell to 0.5575% from 0.5675%, the rest of the yields rose. In particular, the cut-off yield on the April 2025 bond rose to 0.4025% today versus 0.3900% at yesterday's auction.

Issuer Coupon
%
Maturity
mm/yy
Amount purchased
(face value)
$m
Weighted average yield
%
Cut-off yield
%
CGS 2.75 04/24 357 0.3110 0.3075
CGS 3.25 04/25 325 0.4044 0.4025
CGS 4.25 04/26 481 0.4802 0.4775
CGS 4.75 04/27 587 0.5620 0.5575
CGS 2.75 11/27 250 0.6139 0.6100

 

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