Free Trial
ASIA FX

Strong Gains (ex CNH)

JGBS

Early Flattening Holds

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Firmer & Flatter, Futures Away From Overnight Peaks

AUSSIE BONDS

Aussie bond futures bull flattened overnight, with the BoE’s impact on the Gilt market in the driving seat.

  • YM deals +14.5 & XM prints +17.0 in early Sydney trade, a little below late overnight levels after the contracts finished post-Sydney trade off of their respective peaks
  • Bills have also bull flattened, running flat to 18bp richer through the reds, once again shifting a little lower in early Sydney trade. RBA dated OIS price in 43bp of tightening for next week’s decision, little changed vs. Wednesday levels, with terminal rate pricing in to ~4.15%, a little over 10bp lower on the day.
  • Monthly job vacancies data and the ABS's update of its monthly CPI indicator (for July and August) headline the domestic docket on Thursday.
  • Re: the latter, there could be plenty of noise in the data, with CBA warning that “each category has different measurement timings which could challenge the interpretation of headline figures, especially given recent moves in petrol, utility and childcare prices.”
164 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Aussie bond futures bull flattened overnight, with the BoE’s impact on the Gilt market in the driving seat.

  • YM deals +14.5 & XM prints +17.0 in early Sydney trade, a little below late overnight levels after the contracts finished post-Sydney trade off of their respective peaks
  • Bills have also bull flattened, running flat to 18bp richer through the reds, once again shifting a little lower in early Sydney trade. RBA dated OIS price in 43bp of tightening for next week’s decision, little changed vs. Wednesday levels, with terminal rate pricing in to ~4.15%, a little over 10bp lower on the day.
  • Monthly job vacancies data and the ABS's update of its monthly CPI indicator (for July and August) headline the domestic docket on Thursday.
  • Re: the latter, there could be plenty of noise in the data, with CBA warning that “each category has different measurement timings which could challenge the interpretation of headline figures, especially given recent moves in petrol, utility and childcare prices.”