There was speculation more members would vote for a shift in monetary policy. The bank decided to keep policy with a 7-2 majority and that will make people feel comfortable purchasing bonds.
Auction results showed people are feeling safe to buy debt. Results were stronger than I had expected.
The market is pricing in a policy shift, including a rate hike some time later this year, as the economy is showing signs of a pick-up. Shorter debt may remain under pressure.
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