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AUSSIE BONDS: Cash Curve At Steepest This Year

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

The cash ACGB curve steepened by 4bps today, reaching its highest level since early November 2023.

  • With RBA easing expectations having already been unwound on the back of stronger domestic data, the ACGB 3/10 cash curve has been closely aligned with recent upward pressure on the US 10-year tsy yield. This is reflected in the 30-day correlation between the two, which has returned to positive territory after two months in negative territory.
  • Since mid-September, the US 10-year yield has risen by 55-60bps. Over the same period, the ACGB 3/10 cash curve has steepened by 15bps, now standing at 50bps.
  • This correlation suggests that global yield dynamics are exerting significant influence on Australian bond markets, despite the local economic backdrop.

 

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The cash ACGB curve steepened by 4bps today, reaching its highest level since early November 2023.

  • With RBA easing expectations having already been unwound on the back of stronger domestic data, the ACGB 3/10 cash curve has been closely aligned with recent upward pressure on the US 10-year tsy yield. This is reflected in the 30-day correlation between the two, which has returned to positive territory after two months in negative territory.
  • Since mid-September, the US 10-year yield has risen by 55-60bps. Over the same period, the ACGB 3/10 cash curve has steepened by 15bps, now standing at 50bps.
  • This correlation suggests that global yield dynamics are exerting significant influence on Australian bond markets, despite the local economic backdrop.

 

Keep reading...Show less