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AUSSIE BONDS: Cheaper, Narrow Ranges, IMF Warns On Fiscal Policy

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM -6.0 & XM -7.0) are cheaper after dealing in narrow ranges in today’s data-light Sydney session.

  • The trade surplus widened to A$5.644bn (estimate +A$5.500bn) in August from a revised +A$5.636bn in July. Merchandise exports to China rose 4.2% from a month earlier in August to A$13.8bn.
  • (AFR) “The International Monetary Fund has warned the federal and state governments that any further unexpected rise in spending will force the Reserve Bank to keep interest rates high, and that future cost-of-living relief needs to be targeted.” (See link)
  • Cash US tsys are little changed in today’s Asia-Pac session after yesterday’s ADP-induced bear flattener. Today’s US calendar will see Weekly Claims, Factory/Durable Goods Orders and ISM Services, followed by Friday's headline Non-Farm Payrolls for September.
  • Cash ACGBs are 5bps cheaper, with the AU-US 10-year yield differential at +22bps.
  • Swap rates are 4-5bps higher.
  • The bills strip is cheaper, with contracts -2 to -6.
  • RBA-dated OIS pricing is 2-5bps firmer beyond the November meeting. A cumulative 13bps of easing is priced by year-end.
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ACGBs (YM -6.0 & XM -7.0) are cheaper after dealing in narrow ranges in today’s data-light Sydney session.

  • The trade surplus widened to A$5.644bn (estimate +A$5.500bn) in August from a revised +A$5.636bn in July. Merchandise exports to China rose 4.2% from a month earlier in August to A$13.8bn.
  • (AFR) “The International Monetary Fund has warned the federal and state governments that any further unexpected rise in spending will force the Reserve Bank to keep interest rates high, and that future cost-of-living relief needs to be targeted.” (See link)
  • Cash US tsys are little changed in today’s Asia-Pac session after yesterday’s ADP-induced bear flattener. Today’s US calendar will see Weekly Claims, Factory/Durable Goods Orders and ISM Services, followed by Friday's headline Non-Farm Payrolls for September.
  • Cash ACGBs are 5bps cheaper, with the AU-US 10-year yield differential at +22bps.
  • Swap rates are 4-5bps higher.
  • The bills strip is cheaper, with contracts -2 to -6.
  • RBA-dated OIS pricing is 2-5bps firmer beyond the November meeting. A cumulative 13bps of easing is priced by year-end.