Free Trial

Another Round Of Richening

AUSSIE BONDS

Softer than expected rates of expansion in both the Eurozone and U.S. flash PMI readings facilitated a bid in Aussie bond futures during the post-Sydney session, with the pullback from best levels mimicking that observed in the U.S. Tsy space after the EGB close.

  • That leaves YM +18.5 and XM +19.0 in early Sydney dealing, as local participants facilitate some firming vs. late overnight levels, although the two contracts operate a little shy of their respective overnight highs.
  • Meanwhile, the IR strip runs 8-23bp richer through the reds aided by the previously covered moderation in market pricing re: tightening for the major global central banks.
  • Looking ahead, the weekly AOFM issuance slate headlines the local docket during the Sydney session, although that should be a relatively tame affair and not present any tangible impact for the space. Later on Friday (21:30 Sydney/12:30 London) we will see RBA Governor Lowe participate in the UBS Panel discussion on “Central Banks and Inflation.”
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

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.