Holding Softer Into RBA
Aussie bond futures have held cheaper in the lead up to today’s RBA decision, with participants perhaps a little more cautious re: the size of the pending RBA rate hike (influenced by McCrann’s overnight article?), than the 27-4 BBG economist survey split re: a 25/50bp rate hike.
- A reminder that the OIS strip is pricing in ~32bp of tightening for today’s decision. Cash ACGBs run 5-9bp cheaper across the curve, with the 7- to 12-Year zone lagging the broader sell off. YM is -8.0 & XM is -5.0. EFPs have pushed wider again, with the 3-/10-Year box flattening. Bills run 5-12bp cheaper through the reds steepening.