VIEW: ANZ note that they have "been.............>

RBA: VIEW: ANZ note that they have "been highlighting the possibility that, in a

world of aggressive central bank support, the RBA's policy of yield curve

control (YCC) is too subtle. A direct way to assess the impact of YCC versus the

policy settings of other central banks is to consider the relative performance

of government bonds. After all, this is where much of the central bank fire

power is being directed. The 10y ACGB has performed as might be expected given

the relative shifts in front-end pricing. There does not appear to be any

additional underperformance that might be explained by more aggressive bond

buying on the part of the US Fed or RBNZ. This does not mean, however, that more

conventional QE is not 'outperforming' YCC (at least in terms of the impact on

bond yields). Still, the additional underperformance by ACGBs at this point is

relatively modest. As well, the AUD has pulled back from the highs it reached

last week against both the USD and NZD. All of which suggests there is as yet

little cause for the RBA to reconsider the suitability of YCC in a world of

aggressive central bank bond purchases."