Free Trial
USDCAD TECHS

Trend Outlook Is Bullish

US TSYS

Fed "Vigorously" Using it's Tools

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Awaiting WPI

AUSSIE BONDS

Moves in Aussie bond futures have mirrored that observed in U.S. TY futures, with shallow looks below overnight session lows, before a tick away from worst levels. There hasn’t been much in the way of notable macro news flow to drive wider price action thus far, leaving the space in a fairly tight range, trading at the whim of broader core global FI sentiment. YM & XM last -7.5, while cash ACGB trade sees a parallel cheapening shift across the curve. EFPs are a touch wider on the day, with the 3-/10-Year box steepening a little. In terms of RBA pricing, the IB strip currently prices in 36bp of tightening come the end of the Bank’s June meeting, with a year-end cash rate of ~2.85% currently priced.

  • The latest opinion polls continue to show the incumbent coalition chipping away at Labor’s lead ahead of Saturday’s Federal election, but will it be a case of too little, too late? Most polls indicate that will be the case, with a marginal Labor majority generally projected.
  • A$800mn of ACGB Nov-32 supply is due at the top of the hour, with Q1 WPI data due in ~40 minutes.
194 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Moves in Aussie bond futures have mirrored that observed in U.S. TY futures, with shallow looks below overnight session lows, before a tick away from worst levels. There hasn’t been much in the way of notable macro news flow to drive wider price action thus far, leaving the space in a fairly tight range, trading at the whim of broader core global FI sentiment. YM & XM last -7.5, while cash ACGB trade sees a parallel cheapening shift across the curve. EFPs are a touch wider on the day, with the 3-/10-Year box steepening a little. In terms of RBA pricing, the IB strip currently prices in 36bp of tightening come the end of the Bank’s June meeting, with a year-end cash rate of ~2.85% currently priced.

  • The latest opinion polls continue to show the incumbent coalition chipping away at Labor’s lead ahead of Saturday’s Federal election, but will it be a case of too little, too late? Most polls indicate that will be the case, with a marginal Labor majority generally projected.
  • A$800mn of ACGB Nov-32 supply is due at the top of the hour, with Q1 WPI data due in ~40 minutes.