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Some interesting comments from RBA.....>

AUSSIE BONDS: Some interesting comments from RBA Gov. Lowe in his Q&A session in
early London hours Tues. Lowe noted that the RBA is "starting to get concerned
about credit supply." While he also suggested that unemployment may go to 4.5%
without generating wage pressure. It's currently 5.0% & the RBA is projecting
4.75% during '20. This came after the initial speech, which saw Lowe state that
"the Board does not see a strong case for a near-term change in interest rates.
There is a reasonable probability that the current setting of monetary policy
will be maintained for a while yet."
- Futures registered overnight session highs around the time that Lowe spoke,
although the contracts stuck to a tight enough range. The 3-/10-Year cash yield
differential has held above 60bp, with AU paper's recent underperformance vs.
Tsys also holding, AU/U.S. 10-Year yield spread at ~-36.5bp.
- Bills trade unchanged to 1 tick lower through the whites and reds. 3-Month
BBSW set unch. today.
- Non-basket bond issuance due at the top of the hour, with the AOFM set to sell
A$1.0bn of the 2.50% May 21 2030 bond.
MNI London Bureau | +44 0203-865-3809 |