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Firmer In Wake Of Lowe

AUSSIE BONDS

YM +2.6, XM +5.6, with both operating off of best levels after the space turned bid in early Sydney trade (in the wake of a narrow overnight session).

  • RBA Governor Lowe has reaffirmed the Bank's stance re: no decision being made on rolling the 3-Year yield targeting scheme to ACGB Nov '24 (the Bank will consider the matter "again later in the year when it has more information about the economic recovery and the labour market"), while pushing back against the recent moves in market pricing re: the cash rate. Lowe also noted that "the Board will also consider the case for further extending the bond purchase program." Elsewhere, questions surrounding the level of NAIRU could be seen as dovish i.e. potentially promoting the need for a lower for longer policy settings.
  • A$1.0bn of ACGB 1.00% 21 November 2031 supply is due in a little over an hour's time.
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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