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 |
LATEST SNIPPETS
AOFM doubles T-Notes issuance next week, as expected
As expected, the AOFM doubled the amount of T-Notes at tenders next week to A$2 billion from A$1 billion in the last...
Published on : 26 Feb 2021 , 12:10 PMRBA buying A$3B under yield target policy (as CB-Intel flagged)
The RBA has announced it will buy A$3 billion of the April 2023 and April 2024 government bonds under the yield targe...
Published on : 26 Feb 2021 , 11:38 AMAOFM may raise T-Notes tender next week
After reducing weekly T-Notes tenders to just A$1.0 billion (lowest since March last year) last two times, the AOFM m...
Published on : 26 Feb 2021 , 10:56 AMCould RBA surprise with bond-buying today?
All eyes on the RBA today for any announcement on bond purchases under the three-year yield target policy. Since Nove...
Published on : 26 Feb 2021 , 10:35 AMAustralia wage price index beat expectations as some wage reductions unwind
Australia's wage price index beat expectations with a 0.6% q/q and 1.4% y/y rise in December 2020 quarter, data p...
Published on : 24 Feb 2021 , 11:37 AMAOFM sells May 2032 bond at 1.69% weighted average yield
The AOFM sold A$2 billion of the 1.25% May 2032 government bond at weighted average issue yield of 1.6900%.&nbs...
Published on : 24 Feb 2021 , 11:20 AMAOFM's A$2B May 2032 tender result will be interesting
Looking ahead to the results of the AOFM's tender of A$2 billion of 1.25% May 20232 government bonds in about 15...
Published on : 24 Feb 2021 , 10:46 AMRBA buying A$1B of April 2024 under yield target policy
The RBA meets market expectation by announcing purchase of bonds under the three-year yield target policy, apart from...
Published on : 22 Feb 2021 , 11:34 AMRBA bond-buying announcement keenly awaited
Market looking forward to RBA's bond-buying announcement today for purchases under three-year yield target policy...
Published on : 22 Feb 2021 , 10:58 AMWestpac Evans sees Aussie 10-year yield at 1.9% end-2021
Westpac's chief economist Bill Evans has raised his forecast for US 10-year bond yield to 1.8% from 1.5% by the e...
Published on : 19 Feb 2021 , 04:28 PM