Firmer In Wake Of Major Central Bank Decision

Aussie bond futures consolidate their overnight gains, which came in lieu of the latest ECB & BoE decisions, with the guidance and post-meeting rhetoric deployed by both of the banks leaving investors to focus on the timing of the end of the current hiking cycles.

• YM and XM operate a touch shy of their respective overnight peaks, with YM +10.0 & XM +12.5. Wider cash ACGB trade sees the major benchmarks running 9-13bp richer, with the 7- to 12-Year zone leading.
• Bills are 2-15bp richer through the reds, as the strip bull flattens. Meanwhile, RBA dated OIS continues to near-enough fully price in a hike for next week’s meeting, although terminal rate pricing has come in and is showing back below 3.65% after finishing just above 3.70% yesterday.
• Looking ahead, today will see the release of housing finance data and A$500mn of ACGB Apr-29 supply, with participants continuing to assess Thursday’s central bank meetings while looking ahead to Friday’s U.S. NFP print.