September 20, 2024 04:44 GMT
AUSSIE BONDS: Richer, Narrow Ranges, RBA Policy Decision Next Tuesday
AUSSIE BONDS
ACGBs (YM +2.0 & XM +0.5) are slightly stronger and near Sydney session highs. However, dealings have been light with ranges narrow on a data-light day.
- Today’s key regional event was a non-event, with the BoJ leaving the overnight call rate at 0.25% and signaling no need to hurry with interest rate hikes.
- Cash US tsys are 1-2bps richer, with a steepening bias, in today’s Asia-Pac session. There is no US data today, but Fed speakers return. Data will resume on Monday with flash PMIs.
- Cash ACGBs are 1-2bps richer with the AU-US 10-year yield differential at +22bps.
- Swap rates are flat to 2bps lower.
- The bills strip is holding a bull-flattener, with pricing +1 to +3.
- RBA-dated OIS pricing is 1-5bps softer across 2025 meetings. A cumulative 17bps of easing is priced by year-end.
- The local calendar will see Judo Bank PMIs on Monday ahead of the RBA Policy Decision on Tuesday and the CPI Monthly for August on Wednesday.
- Next week, the AOFM plans to sell A$1.0bn of the 3.75% 21 May 2034 bond on Wednesday and A$500mn of the 2.25% 21 May 2028 bond on Friday.
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