Free Trial

Firmer In Wake Of SoMP

AUSSIE BONDS

The space has moved away from Sydney lows on the back of the RBA SoMP, which saw the Bank note that depending on the trajectory of the economy at that time, the Board judges that its central economic scenario "could be consistent with the first increase in the cash rate being in 2024." It went on to note that "in some other plausible scenarios, wages growth and inflation could be higher than implied by the central scenario. If this were to eventuate, an increase in the cash rate in 2023 could be warranted. However, in the Board's view, the latest data and forecasts do not warrant an increase in the cash rate in 2022." As we noted earlier, this provided a slightly harder lean towards the RBA maintaining '24 as the timing of the first cash rate hike as its base case vs. Tuesday's communique, although there is clearly some optionality embedded. PBoC OMO liquidity dynamics are also providing some support. YM +8.0 & XM +7.5. 3- & 10-Year EFPs sit ~1bp wider on the day.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.