Following The Beat Of The Broader Drum Pre-RBA

Aussie bonds have tended to follow the broader cross-market gyrations in the runup to the latest RBA decision, with futures failing to break above their overnight highs during early Sydney dealing.

• The subsequent uptick in e-minis awayhttps://roar-assets-auto.rbl.ms/documents/19057/MNI%20RBA%20Preview%20-%20October%202022.pdf from session lows has applied some pressure to the space, leaving YM +15.5 & XM +15.5. Meanwhile, cash ACGBs run 7-14bp richer across the curve, with bull steepening in play. Bills sit 12-22bp richer through the reds.
• Assuming the generally expected 50bp hike to the RBA’s cash rate target is delivered later today (in line with the wider consensus view of economists and with ~45bp of tightening priced into the OIS strip) then focus will quickly turn to the guidance that the Bank delays on interest rates and whether there is a signal of an imminent slowing of the pace of rate hikes (see our full preview of the event here) .