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.