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AUSSIE BONDS: Slightly Richer, RBA Policy Decision Today, No Change Expected

AUSSIE BONDS
RegionGlobalBulletAPACFixed Income BulletsAustraliaMarkets

ACGBs (YM +1.0 & XM +1.0) are slightly richer after the US tsy curve twist-steepened, with yields closing -0.5bps to +1bps. The 2yr closed -0.4bps at 3.587%, while the 10yr closed +0.8bps at 3.749%. The 2s10s hit a new high of 18, before closing the session +1.4bps at 16.

  • US equities set new highs as the FOMC’s 50bp cut reverberated. Fed speakers overnight indicated more cuts are in the future. However, comments suggested there is a high bar for an additional 50bps cut this year.
  • The RBA's Policy Decision is due today, with Bloomberg consensus unanimously expecting a no-change outcome.
  • Following the decision and statement at 1430 AEST, RBA Governor Bullock will hold a press conference at 1530 AEST. She last spoke on September 5 and since then survey data have been soft but labour market and lending data strong. So, we don’t expect that the Board has changed its view that it is too soon to discuss rate cuts.
  • Cash ACGBs are1bp richer with the AU-US 10-year yield differential at +20bps.
  • Swap rates are 1bp higher.
  • The bills strip is slightly mixed.
  • RBA-dated OIS pricing is little changed. A cumulative 14bps of easing is priced by year-end.
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ACGBs (YM +1.0 & XM +1.0) are slightly richer after the US tsy curve twist-steepened, with yields closing -0.5bps to +1bps. The 2yr closed -0.4bps at 3.587%, while the 10yr closed +0.8bps at 3.749%. The 2s10s hit a new high of 18, before closing the session +1.4bps at 16.

  • US equities set new highs as the FOMC’s 50bp cut reverberated. Fed speakers overnight indicated more cuts are in the future. However, comments suggested there is a high bar for an additional 50bps cut this year.
  • The RBA's Policy Decision is due today, with Bloomberg consensus unanimously expecting a no-change outcome.
  • Following the decision and statement at 1430 AEST, RBA Governor Bullock will hold a press conference at 1530 AEST. She last spoke on September 5 and since then survey data have been soft but labour market and lending data strong. So, we don’t expect that the Board has changed its view that it is too soon to discuss rate cuts.
  • Cash ACGBs are1bp richer with the AU-US 10-year yield differential at +20bps.
  • Swap rates are 1bp higher.
  • The bills strip is slightly mixed.
  • RBA-dated OIS pricing is little changed. A cumulative 14bps of easing is priced by year-end.