Free Trial
EURIBOR OPTIONS

Call fly buyer

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 Overnight

AUSSIE BONDS

The bid in wider core fixed income markets dragged futures higher in overnight trade, with general recession and China COVID worry remaining evident, although the move faded from extremes late in the NY day as equities caught a bid. That leaves YM +11.5 & XM +8.5 in early Sydney dealing.

  • YM & XM sit ~40 & ~30bp from their respective cycle troughs, aided by RBA rate hike premium retreating from extremes in recent sessions. Note that there hasn’t been much in the way of obvious short cover in YM to trigger the move from cheaps, with open interest little changed vs. levels observed at the time where the contract printed its current cycle low. There has been a modest down tick in XM open interest (2%) in recent days, although this isn’t particularly large in the grander scheme of things.
  • The IR strip runs 1-10 ticks firmer through the reds, bull flattening, with the contracts a touch shy of overnight best levels.
  • A$1.0bn of ACGB May-32 supply, the release of the weekly AOFM issuance slate and panel participation by RBA Deputy Governor Bullock at the Regulators 2022 (FINSIA) headline the local docket on Friday.
194 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.

The bid in wider core fixed income markets dragged futures higher in overnight trade, with general recession and China COVID worry remaining evident, although the move faded from extremes late in the NY day as equities caught a bid. That leaves YM +11.5 & XM +8.5 in early Sydney dealing.

  • YM & XM sit ~40 & ~30bp from their respective cycle troughs, aided by RBA rate hike premium retreating from extremes in recent sessions. Note that there hasn’t been much in the way of obvious short cover in YM to trigger the move from cheaps, with open interest little changed vs. levels observed at the time where the contract printed its current cycle low. There has been a modest down tick in XM open interest (2%) in recent days, although this isn’t particularly large in the grander scheme of things.
  • The IR strip runs 1-10 ticks firmer through the reds, bull flattening, with the contracts a touch shy of overnight best levels.
  • A$1.0bn of ACGB May-32 supply, the release of the weekly AOFM issuance slate and panel participation by RBA Deputy Governor Bullock at the Regulators 2022 (FINSIA) headline the local docket on Friday.