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$8B Debt Issuance to Price, $3B Egypt 3Pt Leads


Sharp Retracement


NY Fed Weekly Economic Index (WEI)


JP Morgan Take on FOMC DOTs

AUSSIE BONDS: 3-Year futures have edged higher in the wake of disappointing
domestic retail sales & current account data, last trading at 97.910 (-1.5
ticks), while 10-Year futures last trade at 97.225 (-4.5 ticks).
- The domestic 3-/10-Year yield differential last sits at 70.9bp (+0.5bp), while
the AUUS 10-Year spread sits around -10.0bp.
- Participants await the RBA decision, although unanimous expectations look for
the central bank to stand pat. Little has changed on the domestic inflation
front, with wage growth in keeping with the RBA's "gradual" exp., while many of
the themes on domestic & global growth from the February statement are likely to
be repeated; however, the Bank may introduce language surrounding the recent
trade rhetoric out of the US, which could be deemed dovish.
- Markets currently price a ~60% chance of a hike by the end '18.
- The short end is a little softer as we approach today's decision with the
white and red bill contracts trading 1-3 ticks lower.
- On the corporate issuance front NAB has announced that it plans to issue new
March 2023 & March 2028 benchmark covered bond.
MNI London Bureau | +44 0203-865-3809 |