VIEW: ANZ note that "with 3y yields rising......>

RBA: VIEW: ANZ note that "with 3y yields rising the most since reaching the YCC

target, we will get a better idea of the RBA's views on the operation of the

target. In particular, what the acceptable 'band' around 0.25% is and how long

it is allowed to deviate without intervention. With a public holiday in much of

Australia on Monday and assuming the RBA sticks to its Monday, Wednesday,

Thursday purchase schedule, we will be waiting until Wednesday for the RBA to

act - around a week after the 3y yield deviated more than a basis points or so

from the target. Of course, the Monday, Wednesday, Thursday purchases schedule

is arbitrary to an extent (and the RBA hasn't made any purchases for four

weeks), so there is a risk that it steps in before then. Nevertheless, our

expectation is that it will wait until Wednesday (10 June) to conduct purchases

if the 3y yield is sufficiently above 0.25% to prompt action. These purchases,

if made, will likely be focused on the 3y-5y part of the curve. It may also

follow-up with a second round of purchases on Thursday."