Australian RMBS are getting much needed support. The government's asset manager Australian Office of Financial Management (AOFM), which is supported by the Reserve Bank, plans to temporarily invest up to A$4 billion ($3.3 billion) in RMBS.

Through the AOFM, banks and non-bank lenders will be able to tender their MBS, rather than waiting for financial markets to return to normal.

The move is a temporary measure in response to the current global credit crunch and is expected to put pressure on the Reserve Bank to cut official interest rates next month.

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