MNI BRIEF: ISM Expects Sluggish Growth, Sticky Services Prices

MNI BRIEF: German Infl In Line With EA, Growth Lags - GCEE

MNI BRIEF: Focus Support For Cutting-Edge Tech - Ministry

MNI BRIEF: EU Won't Necessarily Follow US on Tariffs-Gentiloni

MNI China Daily Summary: Wednesday, May 15

MNI: PBOC Conducts CNY125 Bln 1Y MLF Weds; Rates Unchanged

MNI: US TSY TICS NET FLOWS IN MAR +$102.1B

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Cheaper, Narrow Ranges Ahead Of FOMC Policy Decision

AUSSIE BONDS
BulletMarketsFixed Income BulletsHomepage

ACGBs (YM -6.0 & XM -6.5) are holding weaker after dealing in narrow ranges in today’s Sydney session. With the local calendar light and the FOMC Policy Decision due later today, local participants sat on the sidelines.

  • Cash US tsys are dealing ~1bp richer in today’s Asia-Pac session after yesterday’s heavy session.
  • Analysts generally look for a more hawkish message from the FOMC in May compared with March, in light of strong inflation and economic activity data.
  • (AFR) The US and Australian central banks are expected to take a tougher stance on tackling inflation at their upcoming meetings, cementing expectations that interest rates will have to stay high for longer and risking a further sell-off in the market. (See link)
  • Cash ACGBs are 5-6bps cheaper, with the AU-US 10-year yield differential at -19bps.
  • Today’s May-34 bond auction went smoothly with strong demand metrics, including a jump in the cover ratio to 3.9813x from 3.6437x at the March auction.
  • Swap rates are 4-5bps higher, with the 3s10s curve steeper.
  • The bills strip has bear-steepened, with pricing -2 to -6.
  • RBA-dated OIS pricing is 4-6bps firmer for late 2024/early 2025 meetings.
  • Tomorrow, the local calendar will see Building Approvals and Trade Balance data.
200 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 -6.0 & XM -6.5) are holding weaker after dealing in narrow ranges in today’s Sydney session. With the local calendar light and the FOMC Policy Decision due later today, local participants sat on the sidelines.

  • Cash US tsys are dealing ~1bp richer in today’s Asia-Pac session after yesterday’s heavy session.
  • Analysts generally look for a more hawkish message from the FOMC in May compared with March, in light of strong inflation and economic activity data.
  • (AFR) The US and Australian central banks are expected to take a tougher stance on tackling inflation at their upcoming meetings, cementing expectations that interest rates will have to stay high for longer and risking a further sell-off in the market. (See link)
  • Cash ACGBs are 5-6bps cheaper, with the AU-US 10-year yield differential at -19bps.
  • Today’s May-34 bond auction went smoothly with strong demand metrics, including a jump in the cover ratio to 3.9813x from 3.6437x at the March auction.
  • Swap rates are 4-5bps higher, with the 3s10s curve steeper.
  • The bills strip has bear-steepened, with pricing -2 to -6.
  • RBA-dated OIS pricing is 4-6bps firmer for late 2024/early 2025 meetings.
  • Tomorrow, the local calendar will see Building Approvals and Trade Balance data.