A Little Cheaper, But No Tangible Reaction To RBA Matters

YM & XM both -2.5 at typing, although the drift lower in U.S. Tsys seems to be the driving factor there, as opposed to developments surrounding the RBA.

• We had most of the loose details surrounding the key economic projections on Tuesday, via the statement that accompanied the Bank's latest monetary policy decison.
• The tone of RBA Governor Lowe's testimony was upbeat (matching the "half full" label on his coffee cup), albeit cognisant of risk, which was reflected in the Bank's '21 projections re: economic growth (only shaving 0.75ppt off of its '21 GDP growth call, despite the recent lockdowns), while the Bank marked its '22 GDP exp. higher, aided by base effects.
• The Bank's end '21 unemployment rate estimate was left unchanged at 5.0%.
• Comments surrounding the AUD & macroprudential matters (outlined earlier) generated the most interest when it came to Lowe's address.
• The latest AOFM weekly issuance schedule sees a slightly longer long bond on offer next week (ACGB 3.25% 21 June 2039), although the size of that auction will be a tiny A$300mn (A$523K DV01).