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AUSSIE BONDS: Little Changed After In Line CPI Data

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM -1.0 & XM -2.0) remain slightly cheaper despite an initial spike richer following the release of August’s CPI data. 

  • As expected, the headline rate moderated to 2.7% y/y from 3.5% driven by federal government electricity subsidies. The trimmed mean measure also declined, printing 3.4% y/y versus 3.8% in July.
  • (ABS) "The top contributors to the annual movement were Housing (+2.6 per cent), Food and non-alcoholic beverages (+3.4 per cent), and Alcohol and tobacco (+6.6 per cent).
  • "For Electricity, the combined impact of Commonwealth Energy Bill Relief Fund rebates and State Government rebates in Queensland, Western Australia and Tasmania, drove the largest annual fall in electricity prices on record of 17.9 per cent. "
  • Cash US tsys are ~1bp cheaper in today’s Asia-Pac session after yesterday’s bull-steepener.
  • Cash ACGBs are2bps cheaper on the day, with the AU-US 10-year yield differential +17bps. ACGBs remain 5-7bps richer than yesterday’s pre-RBA-Decision levels.
  • Swap rates are 1-2bps higher.
  • The bills strip is cheaper across contracts, with pricing -1 to -2.
  • RBA-dated OIS pricing is slightly firmer on the day but remains 5-9bps softer than pre-RBA levels for 2025 meetings. A cumulative 16bps of easing is priced by year-end.
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ACGBs (YM -1.0 & XM -2.0) remain slightly cheaper despite an initial spike richer following the release of August’s CPI data. 

  • As expected, the headline rate moderated to 2.7% y/y from 3.5% driven by federal government electricity subsidies. The trimmed mean measure also declined, printing 3.4% y/y versus 3.8% in July.
  • (ABS) "The top contributors to the annual movement were Housing (+2.6 per cent), Food and non-alcoholic beverages (+3.4 per cent), and Alcohol and tobacco (+6.6 per cent).
  • "For Electricity, the combined impact of Commonwealth Energy Bill Relief Fund rebates and State Government rebates in Queensland, Western Australia and Tasmania, drove the largest annual fall in electricity prices on record of 17.9 per cent. "
  • Cash US tsys are ~1bp cheaper in today’s Asia-Pac session after yesterday’s bull-steepener.
  • Cash ACGBs are2bps cheaper on the day, with the AU-US 10-year yield differential +17bps. ACGBs remain 5-7bps richer than yesterday’s pre-RBA-Decision levels.
  • Swap rates are 1-2bps higher.
  • The bills strip is cheaper across contracts, with pricing -1 to -2.
  • RBA-dated OIS pricing is slightly firmer on the day but remains 5-9bps softer than pre-RBA levels for 2025 meetings. A cumulative 16bps of easing is priced by year-end.