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ACGBs Rally On Broader Tailwinds, RBA/RBNZ QE Ops Grab Attention

AUSSIE BONDS

Aussie bonds have gained alongside their core FI peers. YM last seen +2.5, while XM trades +5.0 at typing, both at/just below respective session highs. Cash curve runs flatter, yields last sit +0.2bp to -6.6bp, with 3s last seen at 0.086%. Bills change hands -1 to +2 ticks through the reds.

  • The RBA offered to buy A$2.0bn of ACGBs with maturities of Nov '24 to May '28, but excluding Nov '24 ahead of this Friday's sale of ACGB 0.25% 21 Nov '24.
  • A degree of spill-over from across the Tasman may have lent some support to ACGBs, after the RBNZ's LSAP operations saw very light offers for for NZGB Apr '27 & NZGB May '41, with bid/cover ratios slipping below 2.0x.
  • Local news flow has centred around floods caused by heavy rainfalls in NSW, which prompted state authorities to evacuate thousands of people and disrupted the supply of Covid-19 vaccines.
  • Elsewhere, the deal on the trans-Tasman travel bubble is taking shape. PM Ardern said that the date for launching the quarantine-free travel corridor will be unveiled on Apr 6, as both sides are hammering out some details.

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