10-Yr ACGB Yield Hits Eight-Year Peak After Continued Tsy Sell-Off

Cash ACGBs have played catch-up with continued sell-off in U.S. Tsy space seen on Tuesday. The curve shifted higher as Sydney trading re-opened, with yields last seen 9.2-10.5bp better off, with belly underperforming. Cheapening impetus pushed 10-Year yield to 4.08% at one point, a fresh eight-year high for that tenor.

• Benchmark futures contracts have been fairly stable in Wednesday's morning trade, YM last deals -8.2 & XM -11.1. Bills run 11-15 ticks lower through the reds.
• Key focus remains on Wednesday's FOMC monetary policy decision, with markets now fully pricing a 75bp hike to the fed funds rate.
• Participants have also been adding hawkish RBA bets. Last night's interview with RBA Gov Lowe played into that dynamic, as the official said higher rates are "necessary" to curb inflation, which can reach +7.0% Y/Y by the year-end.
• Goldman Sachs followed up by revising their RBA call this morning and now expect 50bp hikes to the cash rate target in both August and September.
• In terms of data releases, Westpac Consumer Confidence takes focus today, as participants await Thursday's jobs market report.