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AUSSIE BONDS: Richer, Haven Buying Overshadows US JOLTS & ISM

AUSSIE BONDS

ACGBs (YM +3.0 & XM +4.5) are stronger after a flight to safety drove US tsys richer with the markets monitoring Israel's invasion of Southern Lebanon and Iran's missile attack on Israel. The cash tsys curve bull-flattened, with yields trading 3-5bps lower. 

  • US job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labour market.
  • The ISM’s manufacturing employment measure dropped to 43.9 from 46.0 in August. Its measure of prices paid by manufacturers decreased to 48.3, the lowest level since December 2023, from 54.0 in August.
  • (AFR) "Debt hits seven-year low before decade of deficits Federal government net debt has fallen to its lowest level since 2017, but economists say the coming decade of deficits will send borrowing levels higher."
  • Cash ACGBs are3-4bps richer, with the AU-US 10-year yield differential at +23bps.
  • The bills strip is richer, with pricing flat to +3.
  • RBA-dated OIS pricing is slightly softer across meetings. Nevertheless, 2025 meetings are 2-3bps firmer than pre-RBA levels. A cumulative 13bps of easing is priced by year-end.
  • Today, 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 +3.0 & XM +4.5) are stronger after a flight to safety drove US tsys richer with the markets monitoring Israel's invasion of Southern Lebanon and Iran's missile attack on Israel. The cash tsys curve bull-flattened, with yields trading 3-5bps lower. 

  • US job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labour market.
  • The ISM’s manufacturing employment measure dropped to 43.9 from 46.0 in August. Its measure of prices paid by manufacturers decreased to 48.3, the lowest level since December 2023, from 54.0 in August.
  • (AFR) "Debt hits seven-year low before decade of deficits Federal government net debt has fallen to its lowest level since 2017, but economists say the coming decade of deficits will send borrowing levels higher."
  • Cash ACGBs are3-4bps richer, with the AU-US 10-year yield differential at +23bps.
  • The bills strip is richer, with pricing flat to +3.
  • RBA-dated OIS pricing is slightly softer across meetings. Nevertheless, 2025 meetings are 2-3bps firmer than pre-RBA levels. A cumulative 13bps of easing is priced by year-end.
  • Today, the local calendar is empty, apart from the AOFM’s planned sale of A$800mn of the 2.75% 21 June 2035 bond.