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Dealing Near Session Cheaps, New Jun-54 Bond Via Syndication Next Week


ACGBs (YM -7.0 & XM -12.0) are trading weaker and are either at or close to the lowest levels of the Sydney session. Given the limited domestic events on the calendar today, it's likely that local participants have been primarily monitoring news headlines and observing developments in US tsys.

  • US tsys have moved away from lows seen in yesterday's NY session in Asia-Pac dealings. This leaves cash tsys 1-3bps richer across the major benchmarks.
  • Cash ACGBs are 6-12bps cheaper, with the AU-US 10-year yield differential 1bp higher at -19bps.
  • Swap rates are 4-10bps higher, with the 3s10s curve steeper and EFPS ~2bps tighter.
  • The bills strip has bear-steepened, with pricing -2 to -5.
  • RBA-dated OIS pricing is 1-4bp firmer across meetings, with Nov’24 leading.
  • On Monday, the local calendar sees a speech by RBA Assistant Governor (Financial System) Jones at the AFR Cryptocurrency Summit, ahead of the RBA Minutes for the October meeting on Tuesday.
  • Today the AOFM announced that a new 21 June 2054 Treasury Bond is planned to be issued via syndication in the week beginning 16 October 2023, subject to market conditions. Joint lead managers are: Barrenjoey Markets; Commonwealth Bank of Australia; J.P. Morgan Securities Australia; UBS Australia and Westpac.

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