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AUSSIE BONDS: Slightly Cheaper, Narrow Ranges, Focus On FOMC Minutes

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM -1.0 & XM -2.0) are slightly weaker after dealing in narrow ranges during the Sydney session. There was little positive spillover from NZGBs following the RBNZ’s 50bp cut.

  • Cash ACGBs are flat to 2bps cheaper, with the AU-US 10-year yield differential at +17bps.
  • Cash US tsys are dealing +/-1bp, with a steepening bias, in today’s Asia-Pac session after yesterday’s modest gains. The market awaits today’s September FOMC minutes ahead of CPI/PPI data on Thursday and Friday respectively.
  • The latest round of ACGB Jun-39 supply saw the weighted average yield print 0.63bps through prevailing mids, extending the recent trend of firm pricing at ACGB auctions. A sale of A$1.0bn of the 2.75% 21 November 2028 bond is due on Friday.
  • Assistant Governor Christopher Kent said the RBA spent AU$9bn on its term funding facility that was implemented at the height of the COVID-19 pandemic to lower borrowing costs.
  • The bills strip has twist-flattened, with pricing -2 to +2.
  • RBA-dated OIS year-end pricing is unchanged after today’s RBNZ decision, with a cumulative 8bps of easing priced by year-end.
  • Tomorrow, the local calendar will see Consumer Inflation Expectation data and panel participation by Sarah Hunter, RBA Assistant Governor (Economic), at Macquarie University. 
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ACGBs (YM -1.0 & XM -2.0) are slightly weaker after dealing in narrow ranges during the Sydney session. There was little positive spillover from NZGBs following the RBNZ’s 50bp cut.

  • Cash ACGBs are flat to 2bps cheaper, with the AU-US 10-year yield differential at +17bps.
  • Cash US tsys are dealing +/-1bp, with a steepening bias, in today’s Asia-Pac session after yesterday’s modest gains. The market awaits today’s September FOMC minutes ahead of CPI/PPI data on Thursday and Friday respectively.
  • The latest round of ACGB Jun-39 supply saw the weighted average yield print 0.63bps through prevailing mids, extending the recent trend of firm pricing at ACGB auctions. A sale of A$1.0bn of the 2.75% 21 November 2028 bond is due on Friday.
  • Assistant Governor Christopher Kent said the RBA spent AU$9bn on its term funding facility that was implemented at the height of the COVID-19 pandemic to lower borrowing costs.
  • The bills strip has twist-flattened, with pricing -2 to +2.
  • RBA-dated OIS year-end pricing is unchanged after today’s RBNZ decision, with a cumulative 8bps of easing priced by year-end.
  • Tomorrow, the local calendar will see Consumer Inflation Expectation data and panel participation by Sarah Hunter, RBA Assistant Governor (Economic), at Macquarie University.