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AUSSIE BONDS: Richer With US Tsys Following A Risk-Off Session

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM +4.0 & XM +5.0) are richer after US tsys bull flattened. The 10-year yield fell 7bps to 4.03%. It found a bid at 4.12%, with resistance at 4.17%, the 200-day moving average. The 2-year yield was fractionally lower at 3.95%.

  • Supporting factors included a softer-than-expected Canadian CPI report and a miss in the latest Empire Manufacturing Survey (albeit offset by stronger details under the hood).
  • Additionally, US equities were weaker and oil prices dropped sharply, on an apparent de-escalation in Iran-Israel tensions.
  • In a speech in Sydney, RBA Assistant Governor Sarah Hunter said inflation expectations have not become de-anchored, with new research showing that households appear to have looked through the recent spike in inflation more than the central bank might have expected. (per RTRS)
  • Cash ACGBs are4-5bps richer with the AU-US 10-year yield differential at+17bps.
  • Swap rates are 3-5bps lower, with the 3s10s curve flatter.
  • The bills strip has bull-flattened, with pricing +1 to +4.
  • RBA-dated OIS pricing is 2-4bps softer for 2025 meetings. A cumulative 7bps of easing is priced by year-end.
  • Today, the local calendar will see the Westpac Leading Index alongside the AOFM planned sale of A$700mn of the 3.75% 21 May 2034 bond.
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ACGBs (YM +4.0 & XM +5.0) are richer after US tsys bull flattened. The 10-year yield fell 7bps to 4.03%. It found a bid at 4.12%, with resistance at 4.17%, the 200-day moving average. The 2-year yield was fractionally lower at 3.95%.

  • Supporting factors included a softer-than-expected Canadian CPI report and a miss in the latest Empire Manufacturing Survey (albeit offset by stronger details under the hood).
  • Additionally, US equities were weaker and oil prices dropped sharply, on an apparent de-escalation in Iran-Israel tensions.
  • In a speech in Sydney, RBA Assistant Governor Sarah Hunter said inflation expectations have not become de-anchored, with new research showing that households appear to have looked through the recent spike in inflation more than the central bank might have expected. (per RTRS)
  • Cash ACGBs are4-5bps richer with the AU-US 10-year yield differential at+17bps.
  • Swap rates are 3-5bps lower, with the 3s10s curve flatter.
  • The bills strip has bull-flattened, with pricing +1 to +4.
  • RBA-dated OIS pricing is 2-4bps softer for 2025 meetings. A cumulative 7bps of easing is priced by year-end.
  • Today, the local calendar will see the Westpac Leading Index alongside the AOFM planned sale of A$700mn of the 3.75% 21 May 2034 bond.