MNI BRIEF: BOC Governor Tiff Macklem Opening Statement

MNI BRIEF: Text of Bank of Canada Interest-Rate Decision

BOC CUTS RATE 50BPS TO 3.25%, SEES GRADUAL APPROACH FROM HERE

MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI: US NOV SUPERCORE CPI (CORE SERVICES EX-HOUSING) 0.342%

MNI: US NOV CPI UNROUNDED M/M 0.313%, CORE 0.308%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUSSIE BONDS: ACGBs Richer, Curve Steepens Tracking Move In US Tsys

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM +6.6 & XM +3.3) are richer today, tracking moves made in US tsys. 

  • Australian household spending rose by 1.8% in August, driven by early Father's Day celebrations, according to a survey by the Commonwealth Bank. Spending in hospitality and household goods saw the biggest gains, increasing by 5.2% and 4.4%, respectively. Utilities and transport spending both fell by 0.3%, partly due to government rebates and lower petrol prices. Despite the rise, the annual spending rate still reflects relatively weak consumer activity.
  • US Tsys have rallied, with short-end yields falling as investors speculated about a potential 50bps interest rate cut by the Fed next week. The yield on two-year notes dropped 5.5bps to 3.584%, while the 10-year yield fell 2.8bps to 3.646%. There was a decent sized Block trade in Fed Futures post the NY close which saw the market shift from a 20% to a 45% chance of a 50bps cut next week. While comments from ex-NY Fed Pres Dudley who suggested a 50bps cut could be warranted.
  • Cash ACGBs are 1-6bps richer, the 2yr yield is -5bps at 3.558%, while the 10yr is -2.7bps at 3.822%. The AU-US 10-year yield differential is little changed today at 17bps.
  • Swap rates are 3-6bps lower, with the curve flatter.
  • The bills strip is little changed today
  • RBA-dated OIS pricing has 5bps into year-end with 22bps of cuts priced now. Pricing has also firmed 2-10bps for meetings through to August 2025.
  • Today, the local calendar was empty, with focus now turning to Retail Sales on Thursday, followed by FOMC later in the day.
256 words

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.

ACGBs (YM +6.6 & XM +3.3) are richer today, tracking moves made in US tsys. 

  • Australian household spending rose by 1.8% in August, driven by early Father's Day celebrations, according to a survey by the Commonwealth Bank. Spending in hospitality and household goods saw the biggest gains, increasing by 5.2% and 4.4%, respectively. Utilities and transport spending both fell by 0.3%, partly due to government rebates and lower petrol prices. Despite the rise, the annual spending rate still reflects relatively weak consumer activity.
  • US Tsys have rallied, with short-end yields falling as investors speculated about a potential 50bps interest rate cut by the Fed next week. The yield on two-year notes dropped 5.5bps to 3.584%, while the 10-year yield fell 2.8bps to 3.646%. There was a decent sized Block trade in Fed Futures post the NY close which saw the market shift from a 20% to a 45% chance of a 50bps cut next week. While comments from ex-NY Fed Pres Dudley who suggested a 50bps cut could be warranted.
  • Cash ACGBs are 1-6bps richer, the 2yr yield is -5bps at 3.558%, while the 10yr is -2.7bps at 3.822%. The AU-US 10-year yield differential is little changed today at 17bps.
  • Swap rates are 3-6bps lower, with the curve flatter.
  • The bills strip is little changed today
  • RBA-dated OIS pricing has 5bps into year-end with 22bps of cuts priced now. Pricing has also firmed 2-10bps for meetings through to August 2025.
  • Today, the local calendar was empty, with focus now turning to Retail Sales on Thursday, followed by FOMC later in the day.