What to buy for Aussie QE

Advertisement

Via the AFR:

Westpac’s head of rates strategy Damien McColough said that given Dr Lowe’s comments it was now time to search out the right bonds.

…”We have preferred the 2027 maturity as it is cheap on an asset swap basis, relative to the bonds around it and, having left the 10-year futures basket, there are sufficient bonds outstanding for the Australian Office of Financial Management to look elsewhere for future issuance.”

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.