24 Aug – 28 Aug 2015

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In was almost a reversal of the previous week with bond yield movements larger than usual at the start of the week and gradually moving back as the week wore on. As Chinese equity markets tanked, growth fears spread to global markets. Commodities also saw extreme volatility with the CRB index making 13 year lows. While the origin of the financial market imbroglio was the Shanghai share market it was the Dow Jones falling 1000 points at the opening of a trading session that really spooked investors. An initial “flight to safety” rush into government bonds saw with Australian 10y yields dipping up 2.50% before retracing back over the course of the week. The PBoC stepped in towards the end of the week, reducing official rates and bank loan requirements stabilising equity markets and resulting in bond yields moving back up.

goverment-bonds-28aug

In the case of 3y bonds the market was only 1bp higher at 1.82% but the 10y ACGBs finished at 2.76%, up 15bps. US 10y rates rose from 2.00% to 2.18%, UK 10y rates went from 1.70% to 1.85% and German 10y bonds rose 15bps to 0.74%.

There were two bond tenders last week; $900m Apr 2027s with a coverage ratio of 2.878 and $800m Oct 2019s with a coverage ratio of 3.959.

On the economic data front, second quarter construction and investment data was overshadowed by the ructions on offshore markets and had little impact. The AUD fell $US1.41c to finish at $US0.7170.

See our New Debt Issues for a complete list of government and corporate debt issues
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AUST GOVT BONDS

MATURITYCOUPON
(%)
ISSUE
SIZE ($M)
CLOSING
YIELD
Δ WEEKΔ MONTHWEEK
HIGH
WEEK
LOW
WEEKLY T/OVER
$ VALUE
21-Oct-154.7511,3992.01-0.010.002.012.01224442
15-Jun-164.7521,9001.88-0.06-0.041.881.864132
15-Feb-17621,0961.82-0.05-0.071.821.79514615
21-Jul-174.2518,9001.82-0.02-0.051.821.75510088
21-Jan-185.520,5001.790.00-0.061.791.70114250
21-Oct-183.2513,5001.820.00-0.071.821.720
15-Mar-195.2521,4471.830.00-0.091.831.7340554
21-Oct-192.7511,7001.920.01-0.101.921.810
15-Apr-204.520,3971.990.03-0.081.991.86178510
21-Nov-201.755,0002.130.04-0.082.131.9949367
15-May-215.7522,2992.190.06-0.072.192.0411017
15-Jul-225.7518,2002.390.09-0.072.392.201228
21-Apr-235.521,3002.510.11-0.082.512.300
21-Apr-242.7522,9002.640.14-0.072.642.42133170
21-Apr-253.2518,9002.730.14-0.092.732.500
21-Apr-264.2516,9002.800.14-0.092.802.570
21-Apr-274.7515,1002.880.15-0.082.882.640
21-Apr-293.259,7003.050.16-0.083.052.80138063
21-Apr-334.59,8003.210.16-0.073.212.9632027
21-Jun-352.754,2503.350.19-0.053.353.080
21-Apr-373.757,5003.370.18-0.053.373.1012852

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