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AUSSIE BONDS: Slightly Richer, Home Loans Beat, US Payrolls Vigil Continues

AUSSIE BONDS

ACGBs (YM +2.0 & XM +2.0) are slightly richer despite today’s home loans data printing stronger-than-expected. 

  • Home loan values rose 3.9% m/m (estimate +1.0%) in July versus a revised +1.0% in June. Owner-occupied home loan values rose 2.9% m/m versus a revised +1.0% in June, while Investor loan values rose 5.4% m/m versus a revised +1.1% in June.
  • Cash US tsys are little changed in today’s Asia-Pac session ahead of US Non-Farm Payrolls data later today.
  • Cash ACGBs are 2-3bps richer, with the AU-US 10-year yield differential at +18bps.
  • Swap rates are 2bps lower.
  • Bills are -1 to +2 across contracts, with the strip flatter.
  • RBA-dated OIS pricing is 1-3bps softer after being 1-2bps firmer across 2025 meetings earlier. A cumulative 19bps of easing is priced by year-end.
  • Today, the local calendar will also see Foreign Reserves data later.

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