The announcement said, “The facility allows bond market participants to borrow bonds that are not readily available from other sources in the market. It is intended to enhance the efficiency of the Treasury Bond market by improving the capacity of intermediaries to provide two-way prices, particularly for bonds that become tight in the repurchase market.
The facility is operated by the Reserve Bank of Australia (RBA) on behalf of AOFM and operates through repurchase agreements between RBA and market participants.”
The Sydney Futures Exchange welcomes this initiative on the part of AOFM as the facility will result in improved liquidity in the bonds that make up the basket of stocks underlying the SFE 3 and 10 Year Treasury Bond Futures.
