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Off Overnight Lows, RBA SLF Usage Tops A$7.0bn

AUSSIE BONDS

The late NY uptick in U.S. Tsys has allowed Aussie bond futures to tick away from overnight lows during early Sydney dealing, This leaves YM -1.0 & XM -1.5 at typing.

  • Note that ACGB borrowing via the RBA’s SLF has breached the A$7.0bn mark, largely focused on the YM basket. The well-documented ACGB collateral shortage is a result of the RBA’s YCT & QE schemes and can exacerbate market moves/hamper broader liquidity.
  • The final round of scheduled RBA ACGB purchases for ’21 headlines a very limited local docket on Thursday.
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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