May 10, 2024 04:51 GMT
ACGBs Slightly Richer,Curve Unchanged, NAB Business Surveys Monday
AUSSIE BONDS
ACGBs (YM +1.0 & XM +1.5) are slightly richer today, there has been little in the way of headlines and another empty calendar today. US tsys futures are trading near session lows, after earlier looked to test overnight highs.
- Cross-asset moves: US equity futures are slightly higher today, China property names and surged higher on news of further easing of buying restrictions, in the G10 currency space, AUD & NZD are the worst performers after being the top on Thursday, while Iron Ore is little changed at $116 a ton.
- The ACGB curve is little changed today yields are about 2bps lower with the 2y10y is +0.100 at 29.50, while the AU-US 10-year yield differential is 2bps higher for the day now -13.5bps
- Swap rates are 1-2bps lower in the front-end, and unchanged out past the 5yr.
- The bills strip is slightly richer up 2bp
- RBA-dated OIS implied rate is pricing 1-2bps lower into the November meeting, while the market is now pricing just 3bps of easing into year-end to a terminal rate of 4.32%
- Today, the calendar is light. Looking ahead to next week we have NAB business surveys on Monday, Wage Price index on Wednesday and Employment Numbers on Thursday.
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