Westpac ups forecast for third round of RBA QE
By Sophia RodriguesPublished On 26 Mar 2021 , 11:19 AM
Westpac has revised its forecast for RBA's Bond Purchase Program, now expecting the second A$100 billion bond-buying to be followed by a third A$100 billion program (up from A$50 billion previous expectation).
Westpac has maintained the forecast for fourth round of bond purchase at A$50 billion, chief economist Bill Evans wrote in a note.
Westpac expects the Fed's QE policy to be a very important signpost for the RBA.
"It is unlikely that the FED will have made sufficient progress towards its goals by October this year to warrant scaling back its asset purchases. Were the RBA to taper it will expose the AUD and signal to the market that it has begun tightening. Such a signal could expose the recovery to unnecessary pressure and cast doubt on the credibility of any forward guidance the RBA may be offering," the note said.
Evans discussed the possibility (not his central call) that the RBA could revert to a more flexible program from October by committing to an open ended monthly target of, say, A$20 billion, (in line with the current purchase pace).
The AOFM has issued A$14 billion of the 1.75% 21 November 2032 bond issue at a price of +12.5bps, and indicative yiel...Published on : 13 Apr 2021 , 10:22 AM
Pricing for The Australian government's 1.75% 21 November 2032 bond issue has been set at +12.5bps, and the order...Published on : 13 Apr 2021 , 09:37 AM
Westpac has revised its forecast for RBA's Bond Purchase Program, now expecting the second A$100 billion bond-buy...Published on : 26 Mar 2021 , 11:19 AM
AOFM’s auction of A$1 billion of 1.5% June 2031 bond today generates relatively strong demand with weighted ave...Published on : 05 Mar 2021 , 11:12 AM
The results of the AOFM’s auction of A$1 billion of 1.5% June 2031 bond today will be an interesting one, given...Published on : 05 Mar 2021 , 10:26 AM
More than usual interest this time in the bond basket for ASX’s September futures contract for three years. The...Published on : 04 Mar 2021 , 11:11 AM
The RBA's aggressive buying of bonds for second consecutive day under the 0.1% three-year yield target polic...Published on : 26 Feb 2021 , 02:52 PM
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 PM
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 AM
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 AM