RBA bond-buying fails to resolve 3-5yr steepening

By Sophia Rodrigues

Published On 03 Apr 2020 , 04:07 PM

The Reserve Bank of Australia's bond-buying auction today for the same amount and bonds as yesterday has resulted in mostly higher yields. This means the steepening in the 3-5yr part of the curve once again remains unresolved.

With the exception of April 2027 where the cut-off yield fell to 0.5575% from 0.5675%, the rest of the yields rose. In particular, the cut-off yield on the April 2025 bond rose to 0.4025% today versus 0.3900% at yesterday's auction.

Issuer Coupon
%
Maturity
mm/yy
Amount purchased
(face value)
$m
Weighted average yield
%
Cut-off yield
%
CGS 2.75 04/24 357 0.3110 0.3075
CGS 3.25 04/25 325 0.4044 0.4025
CGS 4.25 04/26 481 0.4802 0.4775
CGS 4.75 04/27 587 0.5620 0.5575
CGS 2.75 11/27 250 0.6139 0.6100

 

LATEST SNIPPETS

RBA pauses for first time, No bond-buying auction today

For the first time since it began bond-buying via auctions, the RBA is not conducting any purchases today. Last week,...

Published on : 30 Apr 2020 , 12:03 PM
Highlights of Australia Q1 CPI

Highlights of Australia Q1 CPI published by the Australian Bureau of Statistics Wednesday:

--Headline...

Published on : 29 Apr 2020 , 11:48 AM
AOFM sells A$2.5B of 2032 bond but yld up, coverage down

The AOFM has sold A$2.5 billion of 1.25% May 2032 government bond at a weighted average yield of 1.0722%. T...

Published on : 28 Apr 2020 , 11:06 AM
RBA buys A$500m bonds, total buying now A$49.3B

The RBA bought A$500 million of government bonds today, spreading its purchases across all the three bonds meeting it...

Published on : 27 Apr 2020 , 04:14 PM
No pause in RBA bond-buying yet

No pause yet in RBA's bond buying, with announcement today to buy A$500 million of government bonds maturing in t...

Published on : 27 Apr 2020 , 12:29 PM
AOFM total tenders next week A$10.5 billion

The AOFM has announced the following tenders next week, totaling A$5.5 billion of bonds (vs A$6.0 billion this w...

Published on : 24 Apr 2020 , 12:27 PM
AOFM attracts record coverage for 2023 bond

The AOFM's A$1.5 billion of 5.5% April 2023 bonds attracted strong demand with coverage ratio posting a reco...

Published on : 24 Apr 2020 , 11:13 AM
RBA total bond-buying hits A$48.7B

The RBA bought A$500 million of government bonds today, taking its total purchases since it launched bond-buying auct...

Published on : 23 Apr 2020 , 12:00 AM
RBA buying A$500M of May 2028-Nov 2029 bonds

There's no pause in RBA's bond-buying yet with the announcement today to buy A$500 million of May 2028 to Nov...

Published on : 23 Apr 2020 , 02:50 PM
AOFM gets record coverage for A$1.5B May 2030 bond tender

The AOFM has sold A$1.5 billion of 2.5% May 2030 government bond at a weighted average yield of 0.8460%. Th...

Published on : 22 Apr 2020 , 11:16 AM