CBA suggest that the RBA might need....>

AUSSIE BONDS: CBA suggest that the RBA might need to step in to knock the

~3-Year ACGB yield back down - spreads to OIS are wider. They argue that if the

RBA does reactivate ACGB buying then it is unlikely to be exclusively in the

3-Year sector. They suggest they are very comfortable buying the ACGB 24s or 25s

at present, noting there is a natural limit re: how high those yields can go.

They also note that the RBA doesn't currently hold any of the Nov '24, which

could make it ripe for RBA holdings, if required. They also believe that

post-ACGB Nov '25 syndications dynamics may lend support to the line. As such,

they move to buy the ACGB Nov '24 at 0.39%, with a target of 0.25% and a stop at

0.45%