Free Trial

AUSSIE BONDS: Richer With US Tsys, Light Local Calendar

AUSSIE BONDS

ACGBs (YM +1.0 & XM +2.5) are slightly stronger after US tsys managed a modest rebound from the highest yields in a month. US yields were flat to down 4bps, with the 10-year rate at 4.21%, after peaking at over 4.25% yesterday.

  • Initially, US tsys took their cues from European flash PMI data. German composite PMI remained in contractionary territory for the fourth month while French flash October PMIs were weaker than expected for the second consecutive month.
  • However, early support for US tsys evaporated after strong US data (initial jobless claims, new home sales and flash PMIs).
  • Australia’s policymakers have achieved the dual-task of reining in inflation without significantly holding back domestic activity, setting the economy up for a soft landing, according to Treasurer Jim Chalmers. (per BBG)
  • Cash ACGBs are2bps richer with the AU-US 10-year yield differential at +22bps.
  • Swap rates are 2-3bps lower.
  • The bills strip has bull-flattened, with pricing flat to +3.
  • RBA-dated OIS pricing is 1-4bps softer for 2025 meetings. A cumulative 4bps of easing is priced by year-end.
  • Today, the local calendar is empty apart from the AOFM’s planned sale of A$300mn of the 4.25% 21 June 2034 bond.  
189 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

ACGBs (YM +1.0 & XM +2.5) are slightly stronger after US tsys managed a modest rebound from the highest yields in a month. US yields were flat to down 4bps, with the 10-year rate at 4.21%, after peaking at over 4.25% yesterday.

  • Initially, US tsys took their cues from European flash PMI data. German composite PMI remained in contractionary territory for the fourth month while French flash October PMIs were weaker than expected for the second consecutive month.
  • However, early support for US tsys evaporated after strong US data (initial jobless claims, new home sales and flash PMIs).
  • Australia’s policymakers have achieved the dual-task of reining in inflation without significantly holding back domestic activity, setting the economy up for a soft landing, according to Treasurer Jim Chalmers. (per BBG)
  • Cash ACGBs are2bps richer with the AU-US 10-year yield differential at +22bps.
  • Swap rates are 2-3bps lower.
  • The bills strip has bull-flattened, with pricing flat to +3.
  • RBA-dated OIS pricing is 1-4bps softer for 2025 meetings. A cumulative 4bps of easing is priced by year-end.
  • Today, the local calendar is empty apart from the AOFM’s planned sale of A$300mn of the 4.25% 21 June 2034 bond.