Trial now
OPTIONS

Expiries for Nov29 NY cut 1000ET (Source DTCC)

BOND SUMMARY

EGB/Gilt: Markets Reverse Course Following Friday Risk-Off

US 10YR FUTURE TECHS

(Z1)‌‌ Remains Above Last Week’s Lows

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The aggressive post-CPI twist flattening of the futures curve extended in overnight dealing, leaving YM -10.5 and XM +1.5 come the close of post-Sydney dealing.

  • Thursday's focus will squarely fall on the RBA and whether it decides to purchase ACGB Apr-24 after the post-CPI surge in yields saw the line close at 0.2075% on Wednesday (over 10bp above the RBA's 0.10% target). Indeed, ACGB Apr-23 (another bond that the RBA imposed higher repo rates on at the start of last week) closed at 0.1925%. If the RBA does not act over the coming couple of sessions then speculation re: alterations to the YCT mechanism will become more widespread ahead of next week's RBA meeting.
  • A reminder that our policy team ran a piece flagging their understanding that yesterday's CPI reading is unlikely to change the RBA's view on the timing of any future interest rate hike. Still, there have been a couple of notable sell side names that have rolled forward their cash rate hike calls (we will flesh these out in short order).
  • The quarterly terms of trade data and an appearance from RBA Deputy Governor Debelle & Assistant Governor Bullock in front of the Senate Economics Legislation Committee headline the local docket on Thursday.