RBA Pause Bet Bolstered by Strongest Aussie Bond Sale Since 2021
- Short-term bonds get bid-to-cover ratio of 7.63 on Friday
- Swap traders see about 80% chance that RBA will pause hikes
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Australia’s sale of short-term notes drew the strongest demand since 2021, highlighting investor expectations that the central bank will snap its string of 10-straight interest-rate hikes next week.
Buyers offered to acquire 7.6 times the A$500 million ($336 million) of November 2025 bonds, more than at any other auction since August 2021, according to the Australian Office of Financial Management. That’s the eighth-highest bid-to-cover ratio on record, with 2021 spikes coming when the central bank was busy buying government bonds.