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IDR

Virus Continues To Spread In Jakarta

RBA

Upcoming Lowe Appearance Postponed

JGBS

Curve Twist Steepens, Bucking The Trend

AUSSIE BONDS

IRU1 Given

AUSSIE BONDS

Crowded long positioning on the back of the prospect of imminent RBA easing likely added to the pressure seen in the Aussie Bond space, as some of the weaker XM longs folded on the downtick that was initially driven by the U.S. Tsy market, with YM -1.0 and XM -5.5 as we type.

  • The latest ACGB Dec '30 auction was strong, as was expected, with the cover ratio above 6.00x and the average yield stopping through pre-auction mids by ~0.6bp (per BBG prices).
  • Bills didn't react to the all-time low seen in today's 3-month BBSW fixing, after the move seen in the space following yesterday's comments from RBA Assistant Governor Kent (wouldn't be surprising to see BBSW pop below zero). Note that 3-Month BBSW fixed -2bp at 0.06%, with implied rates of the white contracts already trading below that level (0.02-0.05%). The space trades +1 to -2 through the reds.
  • NAB business confidence data, flash CBA PMIs, note supply and an address from RBA Deputy Governor Debelle (on "The Global Foreign Exchange Committee and the FX Global Code") feature on Thursday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com