Free Trial

Dramatically Stronger As U.S. Tsys Surge

AUSSIE BONDS

ACGBs, in futures roll-impacted trade, are dramatically higher (YM +25.0 & XM +16.2) as U.S. Tsys surge following developments in the Silicon Valley Bank (SVB) situation. U.S Tsy 2-year yields decline 60bp as U.S.STIR shunts lower with Goldman Sachs and Barclays both revising their calls to steady for the March FOMC from +50bp previously. Cash ACGBs open 18-26bp stronger with the 3/10 curve 8bp steeper and the AU-US 10-year yield differential -5bp at –23bp.

  • Swaps open with the 3s10s curve 6bp steeper, rates 16-23bp lower and EFPs 3-5bp wider.
  • Bills are 10-42bp richer out to the mid-reds with the whites leading.
  • RBA dated OIS pricing open 10-41bp softer for meetings beyond May with the later meetings leading. Pricing for the April meeting has declined to an 12% chance of a 25bp hike. Terminal rate expectations slump to 3.70%.
  • The local docket delivers the February NAB Business Survey today. January showed a rebound in business conditions after a soft end to 2022.
  • Tracking U.S. Tsys and monitoring SVB developments remains the play of the day, at least until the release of US CPI tonight.
  • AOFM is scheduled to sell A$100mn 1.25% 21 August 2040 Indexed Linked ACGB today.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.