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Firmer To Start, RBA’s Bullock Eyed

AUSSIE BONDS

The richening observed in U.S. Tsys on Tuesday has provided a bid for the ACGB space, with YM +5.0 & XM +9.5 in early Sydney trade, as the contracts threaten a clean break above their overnight peaks.

  • Cash ACGBs run 5.0-9.5bp richer across the curve, with 10s leading.
  • Bills are 1-5bp richer through the reds, with light bull flattening in play. Terminal cash rate pricing via RBA dated OIS is incrementally lower this morning, printing a touch below 4.10%.
  • Looking ahead, Wednesday’s local docket will be headlined by an address from RBA Deputy Governor Bullock, with the topic of “The Economic Outlook” being discussed in front of the ABE annual dinner.
  • Wider risk events come in the form of the U.S. midterms and Chinese inflation data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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