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Firmer As Sydney Returns, RBA Eyed

AUSSIE BONDS

Bond futures tick back towards their respective overnight highs in early Sydney trade, with participants eying Monday’s global rally in core FI markets, which was initially Gilt-driven, before that particular move faded from extremes on the details surrounding the BoE’s latest round of bond buying.

  • That leaves YM +16.0 & XM +17.5 after the aforementioned pullback, as local participants adjust after the long weekend in Sydney.
  • Wider cash ACGB trade sees the major benchmarks running 10-15bp richer, with 3s leading the bid.
  • Bills are 6-12bp richer through the reds.
  • The latest RBA decision headlines the domestic docket on Tuesday. 22 of the 28 surveyed by BBG look for another 50bp step from the Bank, with ~45bp of tightening priced by markets. We leans towards a 50bp hike, although this could be the final hike of that magnitude in the current hiking cycle (see our full preview of the event here: https://roar-assets-auto.rbl.ms/documents/19057/MNI%20RBA%20Preview%20-%20October%202022.pdf ).
  • Elsewhere, Tuesday’s domestic docket will bring ANZ job ads, housing finance and building approvals data.
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Bond futures tick back towards their respective overnight highs in early Sydney trade, with participants eying Monday’s global rally in core FI markets, which was initially Gilt-driven, before that particular move faded from extremes on the details surrounding the BoE’s latest round of bond buying.

  • That leaves YM +16.0 & XM +17.5 after the aforementioned pullback, as local participants adjust after the long weekend in Sydney.
  • Wider cash ACGB trade sees the major benchmarks running 10-15bp richer, with 3s leading the bid.
  • Bills are 6-12bp richer through the reds.
  • The latest RBA decision headlines the domestic docket on Tuesday. 22 of the 28 surveyed by BBG look for another 50bp step from the Bank, with ~45bp of tightening priced by markets. We leans towards a 50bp hike, although this could be the final hike of that magnitude in the current hiking cycle (see our full preview of the event here: https://roar-assets-auto.rbl.ms/documents/19057/MNI%20RBA%20Preview%20-%20October%202022.pdf ).
  • Elsewhere, Tuesday’s domestic docket will bring ANZ job ads, housing finance and building approvals data.