Tight, AFR Suggest Banks To Be Directed To Hold More ACGBs & Semis

Aussie bond futures continue to hold a tight range, after a very limited SYCOM session that was hampered by a U.S. holiday. YM unchanged, with XM +1.0 at typing.

• A story from the AFR has dominated the local news backdrop today. AFR sources have suggested that "banks will be directed by financial regulators to buy up to $240 billion of additional federal and state government debt to normalise emergency bank liquidity, in a regulatory move that will lower government borrowing costs and encourage stimulus spending on infrastructure and other programs." See the earlier bullet for further details and the full release.
• Elsewhere, Sino-Aussie tensions remain evident, reports note that ABC and the AFR rushed their China correspondents out of the country. This came in the wake of the police demanding interviews with the journalists, which resulted in an "extraordinary diplomatic standoff," per ABC.
• '30 I/L supply from the AOFM and the monthly NAB business survey are due on Tuesday.