ACGBs Cheaper, Curve Steeper, Fundies Unconvinced Hikes Are Done

ACGBs (YM -3.0 & XM -4.0) are cheaper today, erasing moves made on Wednesday, there has been little in the way of headlines and another empty calendar today. US tsys futures edged lower throughout the session on Wednesday finishing at intraday lows, with heavy corporate issuance and 10-year auction tailed seen to be a contributors to the weakness.

• Cross-asset on Wednesday the NASDAQ and S&P 500 were little changed, G10 currencies were relatively stable the JPY was the worst performer, while the AUD saw some weakness as traders unwind longs post the RBA on Tuesday where they delivered a slightly less hawkish than expected statement, while Iron Ore was down 2.35%.
• US Tsys curve bear-steepened on Wednesday, yields were 0.5-4.5bps higher, with the 2Y yield +0.6bp at 4.837%, 10Y +3.7bps to 4.494%.
• The ACGB curve has followed global moves and bear-steepened, yields are 3-5bps higher. while the AU-US 10-year yield differential is 2bps higher, now -16bps
• Swap rates are 1-2bp higher.
• The bills strip is slightly richer, with pricing flat to 2bps higher.
• RBA-dated OIS pricing is pricing mixed into year end, with the market now pricing just 1bps of easing to a terminal rate of 4.34%
• (AFR) - Some fundies unconvinced the RBA is done with rate increases - (See Link)
• Today, the calendar is light.