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The space looks through the minutes from the RBA's September meeting, with little in the way of meaningful fresh information offered up on first reflection.

  • Regarding its choice surrounding the shape of its bond purchase scheme, the minutes revealed that "two modifications were considered. The first was to maintain the recent rate of purchases at $5 billion a week to at least November 2021 and then review the program. The second was to taper purchases to $4 billion as had been announced, but to extend the period over which bonds would be purchased at this rate to mid February 2022. With the economy expected to return to its pre-Delta path by mid 2022, members assessed that, on balance, tapering remained appropriate. The Board also took account of the fact that a number of other central banks are tapering their bond purchases. In addition, at $4 billion a week, the Bank's bond purchase program is expanding faster relative to the stock of bonds outstanding than that of many other central banks. The Board also saw value in providing greater clarity regarding bond purchases after November 2021. The Board therefore decided on the second option – namely, to purchase bonds at $4 billion a week until at least mid February 2022. The Board will continue to review the bond purchase program in light of economic conditions and the health situation, and their implications for the expected progress towards full employment and inflation reaching the target."
  • On the liquidity front, the minutes noted that "the Board discussed the Bank's arrangements for Exceptional Liquidity Assistance (ELA)… Members endorsed the proposal for the Bank to publish information on its website regarding technical requirements and other considerations for ELA, in order to increase the transparency of ELA arrangements."
  • YM +3.0, XM +5.0 at typing, while the longer end of the cash ACGB curve sits ~6bp richer on the day.