Little Movement During Bullock Address, Some Interest In Taper Comment

Aussie bonds have generally clung to fairly tight ranges during the early rounds of RBA Deputy Governor Bullock’s Q&A, outside of a brief blip lower in YM futures, perhaps on headlines which suggested that Bullock noted that the Bank will look at opportunities to taper in the future (Governor Lowe had previously said that QT wasn’t on the RBA’s agenda at present), although she has since noted that the Bank has no plans to sell bonds before maturity.

• The move in YM was very shallow and quickly retraced.
• Elsewhere, the speech touched on the P&L losses accrued on the back of the Bank’s BPP, while she has intimated that she believes that the cash rate in not yet in restrictive territory, in addition to reaffirming the Bank’s view of uncertainty re: the global economic outlook.
• OIS pricing is virtually unchanged, as you would expect on such comments.