Banks, RBA must strike fine balance on state government bonds
There is a Churchillian task for the semi bond market. The RBA would love to see the commercial banks help absorb some of that extra bond supply in what would be another form of QE by stealth.
Without being too dramatic about current government bond markets, some words from Winston Churchill aptly describe what the next six months have in store.
“It is where the balance quivers, and the proportions are veiled in mist, that the opportunity for world-saving decisions presents itself,” Churchill, a major government debt issuer himself, once said.
