Bullock’s Comments & Firmer NZGBs Aid The Bid
Cash ACGBs run 13-15bp richer across the curve. We note that the bid was aided by RBA Deputy Governor Bullock stating the probable need for interest rates “to go up a little bit further” in front of the Senate Economics Legislation Committee, as she highlighted the idea that Bank is getting closer to a level whereby it could pause to assess the tightening implemented.
- Elsewhere, catch up to Wednesday’s bid in U.S. Tsys, some trans-Tasman spill over from the bid in NZGBS and the previously alluded to COVID situation in Queensland provided upside impetus ahead of Bullock’s comments.
- The COVID situation in China, with tighter COVID restrictions deployed in a couple of districts in the city of Chongqing, would also have been supportive.