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NZ Syndication Another Factor In The Mix

AUSSIE BONDS

On top of the previously outlined factors, the syndication of New Zealand's new '51 government bond (which also represented an extension of the curve) may have provided some trans-Tasman pressure for ACGBs. The space has since corrected from worst levels of the day, with YM +0.6 & XM +0.1 at typing. Focus is squarely on RBA Governor Lowe's address, which is scheduled to get underway in ~45 minutes time. We noted earlier that the speech will be on the topic of "Delta, the Economy and Monetary Policy." The Governor should flesh out the thought process behind the RBA's most recent monetary policy decision, while we expect him to try and retain a sense of optionality when it comes to the future of monetary policy.

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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