Uptick After Lowe’s Initial Comments

It would seem that the RBA Governor’s reaffirmation of the Bank’s patient stance (with several instances of Lowe stressing the need for patience re: inflation evident) and the fact that the RBA sees wage growth of only 3% in ’23 is supporting bonds a little. This, coupled with the lack of a firm decision on the status of the reinvestment of capital received from maturing bonds held under the Bank’s QE scheme (until yesterday it was assumed that the RBA would organically shrink its balance sheet), has put a modest bid into the space in the wake of Lowe’s initial remarks, even as he noted that the Bank’s goals are now “in sight”. YM -0.5 & XM -2.0 as a result.