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Timeline of key events (Times GMT)

GBPUSD TECHS

Remains Vulnerable

STIR

SFRH4 Given

SCHATZ TECHS

(H3) Pierces Key Short-Term Support

ASIA FX

USD/Asia Pairs Up From Earlier Lows

EURUSD TECHS

Doji Candle Highlights A Potential Base

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Early Gains Pared, ACGB Nov-32 Sale Causes Little Reaction

AUSSIE BONDS

ACGBs pulled back from highs, losing ground alongside U.S. Tsys as the session progressed. The sale of ACGB Nov-32 came and went, while the release of the AOFM's weekly issuance slate coincided with a brief bout of increased volatility.

  • The auction of a Nov' 32 note drew a bid/cover ratio of 2.38x, down from 3.19x at the previous offering, while the tail widened. The yield on that tenor in secondary market sits at 1.42%, with little in the way of reaction to the auction today.
  • The AOFM outlined its plans to hold just one bond auction next week, offering A$800mn of ACGB Nov-28 next Wednesday. It also outlined plans to issue a new May-34 Bond via syndication in the week beginning Nov 7.
  • Local data were shrugged off, with PPI inflation quickening to +6.4% Y/Y in Q3 from +5.6% prior. This comes after an expectation-busting CPI report published earlier this week.
  • Benchmark futures contracts have virtually unwound early gains, with YM last +8.0 & XM +6.0 as YMXM sits +1.5. Bills run 3-10 ticks higher through the reds.
  • ACGB curve still runs slightly steeper, with yields last 7.0-5.2bp lower. 3-Year/10-Year differential has tightened at the margin.
  • Swaps still fully price a 25bp rate hike from the RBA at next week's Board meeting.

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