Reuters reporting comments from the AOFM 30 May

  • counting on sustained demand for a new 30-year AUD benchmark bond next year or year after
  • a very small illiquid 50-year maturity wouldn't add noticeably to extending portfolio duration
  • govt doesn't anticipate a large shift in demand for Australian sovereign paper as a result of deteriorating global stability

The Australian Office of Financial Management's CEO Nicholl adds that foreign ownership of Australian bonds continues to decline.

AUDUSD 0.7423 tightly bound after failing into 0.7450 but finding demand/support below 0.7420. More bids into 0.7400.

Falling iron ore prices continue to weigh on the ccy.