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RBA Re-Pricing Drives, AOFM Issuance & Budget Not As Loose As Exp.

AUSSIE BONDS

Aussie bonds saw 3-Year yields tag a fresh all-time low, with greater odds of further RBA easing priced, in addition to a budget and AOFM bond issuance update that were not as loose as most of the sell-side expected. YM +3.0, XM +4.0, a touch shy of early Sydney highs.

  • Late Tuesday saw RBA watcher McCrann note that the Bank is very likely to deliver an easing package at its November meeting (see our RBA review for more colour on the decision, as well as sell-side views).
  • We also saw S&P affirm Australia at AAA, outlook negative after hours on Tuesday.
  • A$2.5bn worth of ACGB '31 supply was easily absorbed.
  • Bills sit -1 to +2 through the reds.
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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