VIEW: ANZ notes that "the RBA opted....>

AUSSIE BONDS: VIEW: ANZ notes that "the RBA opted not to purchases any bonds on

Thursday... The RBA will be encouraged by 3y yields staying within 1bp of the

0.25% target. Also encouraging from the RBA's perspective was Monday's auction

of AUD2.5bn of the May 2030 ACGB line. The tender had a strong result, eliciting

a 3.2 coverage ratio and a weighted average yield 0.44bp through the secondary

market rate - a strong result, considering the size. The fact that the AOFM can

get issuance done in size, across the curve, will be taken by the RBA as a sign

that ACGB markets have returned close to normal. From here, it seems that one

day of ACGB purchases & one day of semi purchases should be our baseline for the

RBA's bond buying (per week). However, it is hard to be definitive about this,

given the evolving nature of RBA policy. We still expect the ACGB curve to

steepen with the flood of issuance. The RBA will be comfortable with this as

long as the supply is absorbed without market disruptions. The big challenge for

the RBA is the strength of the AUD. The RBA can pass this off as more related to

risk-on sentiment generally than the impact of their limited bond purchases vs.

what others are doing. The rally in the AUD/NZD cross suggests otherwise."