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MNI Speaks With St. Louis Fed President Bullard


Heading South

AUSSIE BONDS: Curve running a touch flatter vs. settlement in early SFE trade,
after the long end witnessed some marginal outperformance on low volume during
SYCOM hours. Front end was modestly pressured by less dovish rhetoric from Fed
voter Bullard, as well as comments from Fed Chair Powell who warned against an
overreaction re: rate cuts (in effect easing speculation re: the likelihood of a
50bp cut from the Fed in July).
- RBA's Bullock did not mention MonPol/the economic outlook in her Tuesday
speech (as was expected with a topic of payment systems).
- YM last -1.0 tick, XM +0.5 tick. YM/XM trades at 41.5 ticks, with the cash
equivalent at 36.4bp.
- Bills trade 1-2 ticks lower through the reds.
- No local data today, but the RBNZ's latest MonPol decision from across the
Tasman will generate interest.
MNI London Bureau | +44 0203-865-3809 |