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ANZ note that "the RBA has continued...>

AUSSIE BONDS
AUSSIE BONDS: ANZ note that "the RBA has continued to reduce its bond purchases,
opting to not buy on Monday or Wednesday this week. We still think 10y ACGBs
could cheapen further versus 10y UST. It will be interesting to see how the RBA
manages the liquidity impact of the settlement of the AOFM's record A$19bn
syndication for the new Dec 2030 line. Historically, the RBA would 'sterilise'
the impact this has on exchange settlement (ES) balances. But with the abundance
of surplus ES balances, it may not do so this time. In which case, the surplus
balance will drop sharply on settlement of the bond."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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