CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BONDS: ACGBs Cheaper As Curve Steepens, OIS Pricing Continues To Cool

BONDS
BulletMarketsFixed Income Bullets
  • ACGBs (YM -5.0 & XM -5) are cheaper today and trade at session's worst. There was limited data out in the region today, while Japan was also out for a public holiday. Focus was largely on China where they held further business briefing surrounding measures to support the market, equities saw heightened volatility with markets swinging 1-3% both ways. Iron ore saw decent moves also and now trades 2.90% higher.
  • US cash tsys trading has been closed today with Japan out, we also saw limited trading in Tsys futures with ranges narrow.
  • Cash ACGBs are trading 4-6bps cheaper, with the curve beat-steepening. The 2yr is +3.2bps at 3.855%, while the 10yr is +4.1bps at 4.267% and now trades back at July 30 levels. The 2s10s made new highs earlier of 42.18, levels not seen since April 30th, we trade just off those levels at 40.10 now.
  • Earlier there was decent demand for the 2051 at the auction, although bid/cover was slightly down on the July auction at 3.15x, with average yield of 4.8254%, we trade little changed at 4.8253% now.
  • Swaps are trading 2-4bps higher
  • The bills strip -1 to -4 across contracts
  • RBA-dated OIS pricing has continued to cool with just 8.8bps of cuts priced in through to year-end now, down from 10bps this morning. There is 22bps of cuts priced for Feb, down 2bps. While pricing continues to cool further out the curve with 66bps, down 4bps priced through to Sept 2025.
  • The local calendar is light on until Thursday when we have employment data due
252 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 -5.0 & XM -5) are cheaper today and trade at session's worst. There was limited data out in the region today, while Japan was also out for a public holiday. Focus was largely on China where they held further business briefing surrounding measures to support the market, equities saw heightened volatility with markets swinging 1-3% both ways. Iron ore saw decent moves also and now trades 2.90% higher.
  • US cash tsys trading has been closed today with Japan out, we also saw limited trading in Tsys futures with ranges narrow.
  • Cash ACGBs are trading 4-6bps cheaper, with the curve beat-steepening. The 2yr is +3.2bps at 3.855%, while the 10yr is +4.1bps at 4.267% and now trades back at July 30 levels. The 2s10s made new highs earlier of 42.18, levels not seen since April 30th, we trade just off those levels at 40.10 now.
  • Earlier there was decent demand for the 2051 at the auction, although bid/cover was slightly down on the July auction at 3.15x, with average yield of 4.8254%, we trade little changed at 4.8253% now.
  • Swaps are trading 2-4bps higher
  • The bills strip -1 to -4 across contracts
  • RBA-dated OIS pricing has continued to cool with just 8.8bps of cuts priced in through to year-end now, down from 10bps this morning. There is 22bps of cuts priced for Feb, down 2bps. While pricing continues to cool further out the curve with 66bps, down 4bps priced through to Sept 2025.
  • The local calendar is light on until Thursday when we have employment data due