AUSSIE BONDS: Richer, Light Data Calendar, RBA Assistant Gov. Speech Due

In roll-impacted dealings, ACGBs (YM +3.2 & XM +3.4) are richer after US tsys bull-steepened, with US 2- and 10-year yields finishing 6-7bps lower. 

• There was no US economic data yesterday, with the markets awaiting tomorrow’s CPI and Thursday’s PPI inflation measures. Core non-housing service inflation is expected to see at least a repeat of the 0.21% M/M from July.
• The Federal Reserve's top banking regulator Michael Barr said the biggest US banks would face a 9% increase in capital requirements in a re-proposal of Basel endgame and G-SIB surcharge rules.
• “The Greens will demand that Labor retains a law that allows RBA governor Michele Bullock to tell banks how to lend money, arguing future monetary stimulus should be directed to green technology and renewable energy.” (per BBG)
• Cash ACGBs are3-4bps richer, with the AU-US 10-year yield differential at +23bps.
• Swap rates are 4bps lower.
• The bills strip has bull-flattened, with pricing flat to +6.
• RBA-dated OIS pricing is flat to 6bps softer, with 2025 meetings leading. A cumulative 17bps of easing is priced by year-end.
• RBA Assistant Governor Hunter will give a speech at the Barrenjoey Economic Forum today.
• Today, the AOFM plans to sell A$1.2mn of the 4.25% 21 December 2035 bond.