RBA: OIS market to range trade - ANZ

Analysts at ANZ expect the OIS market to range trade, but suggest that there is the potential for pricing to be further reduced.

Key Quotes

“Last week we suggested OIS pricing was at the top of its range and, with the RBA arguably more dovish in its statement by reducing GDP growth expectations, the market has subsequently reduced pricing. While we felt the market was stretched we didn’t believe this warranted a formal receive recommendation given the limited potential of the market to move. From here, we expect the OIS market to range trade, but with the RBA’s rhetoric shifting on growth, there is the potential for pricing to be further reduced.”