RBA bond-buying fails to resolve 3-5yr steepening
By Sophia Rodrigues
Published On 03 Apr 2020 , 04:07 PMThe 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 |