Free Trial
AUSSIE BONDS

Front End Leads The Bid

US TSY OPTIONS

Pullback In TY Skew Seen During Recent Bid

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
AUSSIE BONDS
AUSSIE BONDS: 3- & 10-Year futures trade 1 tick back from lows after the
contracts followed Tsys lower in early dealing.
- The space had little reaction to comments from RBA Gov. Lowe, made during
SYCOM hours, as he noted that the RBA is "starting to get concerned about credit
supply." While he also suggested that unemployment may go to 4.5% without
generating wage pressure. It's currently 5.0% & the RBA is projecting 4.75%
during '20. This came after the initial speech, which saw Lowe state that "the
Board does not see a strong case for a near-term change in interest rates. There
is a reasonable probability that the current setting of monetary policy will be
maintained for a while yet."
- The 3-/10-Year cash yield differential has held above 60bp, with AU paper's
recent underperformance vs. Tsys also holding, AU/U.S. 10-Year yield spread at
~-37.0bp. Bills trade 1 tick higher to 1 tick lower through the whites and reds.
3-Month BBSW set unch. today.
- A softish non-basket bond auction added some modest pressure to the space in
early dealing.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.