Free Trial

MNI MARKETS ANALYSIS: Aussie Bills.....>

AUSSIE BONDS
AUSSIE BONDS: MNI MARKETS ANALYSIS: Aussie Bills Weekly Update - August 30, 2019
- The whites have generally underperformed at the margin this week.
- RBA Dep. Gov. Debelle suggested that the floor for the cash rate is likely
~0.0-0.5% in a Q&A session. Debelle also noted that if rates got down to "around
0.5%" then the Bank would have to consider "other options." Debelle's comments
were not surprising given the recent commentary from Gov. Lowe & the release of
the mins from the RBA's Aug MonPol decision. Although the Bank prev. suggested
that unconventional MonPol in Australia is an unlikely outcome at present, and
that a package of measures tends to be more effective than any single unorthodox
measure in isolation. This was backed up by the understanding in our latest
insight piece. Some market participants deemed this a bit of a push back against
the idea of negative rates.
- On the data front Q2 capex & completed construction work were disappointing,
presenting downside risks to next week's Q2 GDP print. The RBA MonPol decision
will provide the other notable point of interest next week.
- 3-Month BBSW has shed ~1.5bp W/W but operates above the all-time lows.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.