The long end of the Australian bond....>

AUSSIE BONDS: The long end of the Australian bond curve shrugged off the RBA's

latest tapering of ACGB purchases (A$500mn vs. prev. A$750mn), as it chose to

focus on its 2029 holdings today (the two longest bond maturities that it

holds). The first of this week's coupon bearing ACGB auctions was smoothly

digested (albeit effectively backstopped by the RBA's YCC). Curve a touch

flatter on the day, YM unchanged, XM +3.0.

- Elsewhere, RBA Governor Lowe noted that "Australia shouldn't be concerned

about its escalating government debt in response to the coronavirus crisis

because of the long record of responsible fiscal policy."

- Bills -1 to +1 through the reds.

- Looking ahead, the minutes from the RBA's most recent MonPol decision, RBA

speak from Governor Lowe and the ABS' inaugural weekly payrolls and wage data

will all hit in the next 24 hours.

- Also worth flagging that ~A$4.03bn worth of coupons will be paid out on ACGBs

tomorrow (including that which the RBA holds).