Free Trial
USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

EURJPY TECHS

Price Is Below The 50-Day EMA

US

Late Corporate Credit Update

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

Bull Flattening, RBA Minutes Eyed

AUSSIE BONDS

The bullish impetus from the U.S. Tsy space transpired into a bull flattening move in Aussie bond futures during the overnight session, even with the U.S. Tsy curve bull steepening after the long end retraced from firmest levels of the session. That leaves YM +7.5 & XM +10.0 in early Sydney trade, a little shy of their respective post-Sydney peaks and in line with late overnight levels. Bills run 3-9bp richer through the reds.

  • Tuesday’s domestic calendar is headlined by the release of the minutes from the RBA’s August decision. Any wording surrounding the thought process re: the Bank’s assumptions when it comes to the path of the cash rate, which was roughly in line with the median analyst call if you looked at the ‘Big 4’ projections at the time of the decision (“assumed to increase to around 3 per cent by the end of 2022, and then decline a little by the end of 2024”) will be eyed after the Bank noted that policy was not on in a pre-set path in its post-meeting statement (a phrase that had been used in recent RBA speeches, but gave a dovish feel to the statement given its formal introduction). The Bank also chose to highlight the narrow path it is on when it comes to comes to returning inflation to the target range “over time, while keeping the economy on an even keel” (once again, not a new idea, but a new line in the statement).
246 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.

The bullish impetus from the U.S. Tsy space transpired into a bull flattening move in Aussie bond futures during the overnight session, even with the U.S. Tsy curve bull steepening after the long end retraced from firmest levels of the session. That leaves YM +7.5 & XM +10.0 in early Sydney trade, a little shy of their respective post-Sydney peaks and in line with late overnight levels. Bills run 3-9bp richer through the reds.

  • Tuesday’s domestic calendar is headlined by the release of the minutes from the RBA’s August decision. Any wording surrounding the thought process re: the Bank’s assumptions when it comes to the path of the cash rate, which was roughly in line with the median analyst call if you looked at the ‘Big 4’ projections at the time of the decision (“assumed to increase to around 3 per cent by the end of 2022, and then decline a little by the end of 2024”) will be eyed after the Bank noted that policy was not on in a pre-set path in its post-meeting statement (a phrase that had been used in recent RBA speeches, but gave a dovish feel to the statement given its formal introduction). The Bank also chose to highlight the narrow path it is on when it comes to comes to returning inflation to the target range “over time, while keeping the economy on an even keel” (once again, not a new idea, but a new line in the statement).