MNI BRIEF: European Fiscal Board Calls For Fiscal Tightening

MNI BRIEF: ADP's Richardson Sees Pockets of Weakness in US Job Market

MNI China Daily Summary: Wednesday, July 3

MNI BRIEF: NBP Holds Reference Rate At 5.75% As Expected

MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

US EIA: CRUDE OIL STOCKS EX SPR -12.16M TO 448.5M JUN 28 WK

Unexpected Factory Orders Drop Further Sign Of Softening Goods Output

MNI: US MAY FACTORY ORDERS -0.5%; EX-TRANSPORT NEW ORDERS -0.7%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Heavy Put Option Activity

AUD

Some fairly large put option expiries on Tuesday at nearby strikes. around AUD 610m rolling off at 0.7575 and AUD 580m at 0.7580, and another AUD370m at 0.76 AUD/USD last down 13 pips at 0.7574.

  • As our fixed income desk noted, today's record low fixing for 3-Month BBSW is a possible driver of receiver side flows in the swap space, and creating favourable hedging conditions for foreign investors
  • 3-month cross currency basis swaps dropped to -26.00bps on Tuesday, the lowest since September 2011. 1-year has dropped to -11.75bps, the lowest since September 2008.
  • The drop stems from the RBA's ultra-loose monetary policy setting pumping liquidity into the system. Cheaper borrowing could see an influx of foreign cash seeking hedged returns, while domestic demand for foreign securities is likely to cool.
BulletMarketsForeign Exchange Bullets
BulletMarketsForeign Exchange Bullets

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.