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CHINA PBOC CONDUCTS CNY19.2 BLN VIA 7-DAY REVERSE REPOS THURS

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CHINA YTD EXPORT +5.1% Y/Y VS JAN-SEP +4.3% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1659 THURS VS 7.0993

MNI: CHINA YTD EXPORTS +6.7% Y/Y IN YUAN TERM: CUSTOMS

MNI:AUSTRALIA SEP TRADE BALANCE A$+4609

EZ/UK Bond Supply Calendar: Spain, France Auction on Wednesday

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

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AUSSIE BONDS: Cheaper, Subdued Session Ahead Of FOMC Decision

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM -1.0 & XM -2.5) are slightly weaker after dealing in narrow ranges in today’s Sydney session. 

  • RBA Governor Bullock appeared before the Senate Economics Committee today and reiterated that inflation needs to return “sustainably” to target and that is its focus. She also noted that both survey and market measures of medium-term inflation expectations are around 2.5%, the mid-point of the band.
  • Attention now turns to the Federal Reserve’s interest-rate decision later today, where policymakers are expected to cut borrowing costs by 25bps. Cash US tsys are 1bp richer in today’s Asia-Pac session after yesterday’s savage post-US election sell-off.
  • Cash ACGBs are flat to 2bps cheaper, with a steepening bias. The AU-US 10-year yield differential is at +22bps.
  • Swap rates are 1bp lower to 2bps higher, with the 3s10s steeper.
  • The bills strip is weaker, with pricing -1 to -2.
  • RBA-dated OIS pricing is flat to 2bps firmer today. 2025 meeting pricing remains 2-9bps higher than pre-RBA levels on Tuesday. No easing is priced for this year, with June 2025 being the first meeting where a 25bp rate cut is fully anticipated.
  • Tomorrow, the local calendar is empty apart from the AOFM’s planned sale of A$800mn of the 2.75% 21 June 2035 bond.  
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ACGBs (YM -1.0 & XM -2.5) are slightly weaker after dealing in narrow ranges in today’s Sydney session. 

  • RBA Governor Bullock appeared before the Senate Economics Committee today and reiterated that inflation needs to return “sustainably” to target and that is its focus. She also noted that both survey and market measures of medium-term inflation expectations are around 2.5%, the mid-point of the band.
  • Attention now turns to the Federal Reserve’s interest-rate decision later today, where policymakers are expected to cut borrowing costs by 25bps. Cash US tsys are 1bp richer in today’s Asia-Pac session after yesterday’s savage post-US election sell-off.
  • Cash ACGBs are flat to 2bps cheaper, with a steepening bias. The AU-US 10-year yield differential is at +22bps.
  • Swap rates are 1bp lower to 2bps higher, with the 3s10s steeper.
  • The bills strip is weaker, with pricing -1 to -2.
  • RBA-dated OIS pricing is flat to 2bps firmer today. 2025 meeting pricing remains 2-9bps higher than pre-RBA levels on Tuesday. No easing is priced for this year, with June 2025 being the first meeting where a 25bp rate cut is fully anticipated.
  • Tomorrow, the local calendar is empty apart from the AOFM’s planned sale of A$800mn of the 2.75% 21 June 2035 bond.