Cheaper, Waiting For Payrolls, CPI Monthly Next Wednesday

ACGBs (YM -5.0 & XM -6.0) remain cheaper after dealing in relatively tight ranges in today’s Sydney session. With the local calendar empty, local participants have held the negative overnight lead in from US tsys ahead of Non-Farm Payrolls later today.

• Bloomberg consensus sees nonfarm payrolls growth of 171k in December after November’s 199k was boosted by 38k workers returning from strikes. See MNI's NFP Preview here.
• Cash US tsys are dealing little changed in today’s Asia-Pac session after yesterday’s 5-8bps cheapening.
• Cash ACGBs are 5-6bps cheaper, with the AU-US 10-year yield differential 1bp tighter at +11bps.
• Swap rates are 6bps higher, with the 3s10s curve unchanged.
• The bills strip is cheaper, with pricing -2 to -7.
• RBA-dated OIS pricing is 3-6bps firmer for meetings beyond May.
• Following the Australian Government’s release of the Mid-Year Economic and Fiscal Outlook (MYEFO) in December 2023, the AOFM announced today that Treasury Bond issuance for 2023-24 is planned to be around $50 billion (of which $23.6 billion has been completed).
• Next week the local calendar heats up with the release of Retail Sales and Building Approvals on Tuesday, and Job Vacancies and November’s CPI Monthly on Wednesday.