Holding Weaker, AU-CA 10Y Diff. Widest Since December

ACGBs (YM -2.0 & XM -3.5) sit weaker but off Sydney session cheaps. The local calendar was news flow light today.

• Nevertheless, ACGBs largely looked through potentially constructive developments abroad, namely richer cash US tsys following President Biden’s announcement that he would not contest the November election and the surprise monetary easing by the PBoC.
• At 94bps, the AU-CA cash 10-year yield differential sits at its highest level since last December. (See link)
• (MNI) The Reserve Bank of Australia wants to make greater use of real-time metrics and would benefit greatly from more immediate services-sector data in future as it works to more accurately gauge the state of the economy and inform its monetary-policy decisions, a former RBA economist told MNI. (See link)
• Cash ACGBs are 2-3bps cheaper, with the AU-US 10-year yield differential at +10bps
• Swap rates are 2-4bps higher.
• The bill strip pricing is -2 to -3.
• RBA-dated OIS pricing is 1-3bps firmer for 2025 meetings. Terminal rate expectations sit at 4.44%.
• ICYMI, the AOFM announced on Friday that a new Dec-35 bond is planned to be issued via syndication this week (subject to market conditions).
• This week, the local calendar is empty apart from Preliminary Judo Bank PMIs on Wednesday.