Cheaper But Narrow Ranges Ahead Of Jackson Hole

ACGBs (YM -4.0 & XM -4.0) are cheaper after dealing in narrow ranges in today’s Sydney session. With the domestic calendar light today, local participants appear happy to sit on the sidelines ahead of Fed Chair Powell’s address at the Jackson Hole Symposium later today.

• (AFR) Treasurer Jim Chalmers says a new dual board structure at the Reserve Bank of Australia could be running from the start of next year if shadow treasurer Angus Taylor offered the Coalition’s support for the overhaul. (See link)
• The latest round of ACGB Nov-28 supply saw the weighted average yield print 0.75bp through prevailing mids, extending the recent trend of firm pricing at ACGB auctions. Moreover, the cover ratio held above 4.00x, printing at 4.2286x versus 4.4389x previously.
• Cash US tsys are 1-2bps richer, with a steepening bias, in today’s Asia-Pac session after yesterday’s sell-off.
• Cash ACGBs are 3-4bps cheaper, with the AU-US 10-year yield differential at +8bps.
• Swap rates are 3bps higher.
• The bills strip has bear-steepened, with pricing flat to -5.
• RBA-dated OIS pricing is flat to 4bps firmer. A cumulative 21bps of easing is priced by year-end.