© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
GOLD

Can't Sustain Gains Above 50-Day MA

US TSYS

Another Light 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
Trending Top 5
Topics

A Touch Softer Than Settlement, Retail Sales Eyed

AUSSIE BONDS
BulletMarketsFixed IncomeBond Market News

Post-Sydney dealing saw Aussie bond futures pare early overnight losses (derived from core EGB-led weakness and positive news surrounding the shortening of the COVID-related quarantine period for arrivals into China) as U.S. Tsys rallied through NY dealing, alongside pressure on the U.S. equity space (reasons for those moves were fleshed out earlier). Still, Aussie bond futures failed to move into positive territory and operate just below late overnight levels shortly after the Sydney re-open, with YM -2.0 and XM -4.0. Cash ACGBs run 2.0-4.5bp cheaper across the curve, with the 10- to 12-Year sector leading the way lower. The positives surrounding Chinese quarantine matters may have resulted in the widening of the AU/U.S. 10-Year yield spread, given Australia’s closer linkages with China. Bills sit 2-4bp cheaper through the reds vs. settlement.

  • Retail sales data headlines the domestic docket on Wednesday. The market expects a +0.4% M/M print for May, versus +0.9% previously. There is a wide range of estimates, +1.0% to -1.0%. As we noted yesterday, consumer sentiment has fallen sharply in recent months, which may pose a downside risk to spending (although inflation provides some offset to that dynamic, at least in headline terms).
195 words

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.

Post-Sydney dealing saw Aussie bond futures pare early overnight losses (derived from core EGB-led weakness and positive news surrounding the shortening of the COVID-related quarantine period for arrivals into China) as U.S. Tsys rallied through NY dealing, alongside pressure on the U.S. equity space (reasons for those moves were fleshed out earlier). Still, Aussie bond futures failed to move into positive territory and operate just below late overnight levels shortly after the Sydney re-open, with YM -2.0 and XM -4.0. Cash ACGBs run 2.0-4.5bp cheaper across the curve, with the 10- to 12-Year sector leading the way lower. The positives surrounding Chinese quarantine matters may have resulted in the widening of the AU/U.S. 10-Year yield spread, given Australia’s closer linkages with China. Bills sit 2-4bp cheaper through the reds vs. settlement.

  • Retail sales data headlines the domestic docket on Wednesday. The market expects a +0.4% M/M print for May, versus +0.9% previously. There is a wide range of estimates, +1.0% to -1.0%. As we noted yesterday, consumer sentiment has fallen sharply in recent months, which may pose a downside risk to spending (although inflation provides some offset to that dynamic, at least in headline terms).