MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Labour Market Data Adds To Flattening Pressure

AUSSIE BONDS

The cheapening impetus seen from stronger-than-expected domestic labour market data allowed the Tsy-inspired flattening impetus to extend, with another shunt lower in the unemployment rate outstripping market expectations.

  • The space is back from extremes in terms of both cheaps and session flats as we work towards the Sydney close. Cash ACGBs run 2-15bp cheaper across the curve, with 3s sitting ~14.5bp cheaper at typing, after printing as much as 19bp cheaper earlier in the day. YM and XM are -14.0 and -4.5, respectively after the former breached its overnight lows in the wake of the labour market report. EFPs have continued their recent tightening, with the 3-/10-Year box flattening today.
  • Bills run flat to 34 ticks cheaper through the reds, bear flattening.
  • STIR markets now price in ~64bp of tightening come the end of the RBA’s August meeting, with Goldman Sachs and Nomura being the first two sell-side names to call for such a move. The continued tightening of the labour market, coupled with the frontloading of Fed hike expectations have been in the driving seat today, with the labour market report threatening to force a further frontloading of RBA tightening, in addition to opening the door towards a higher terminal rate.
  • Friday will see the release of the AOFM’s weekly issuance slate, as well as a A$700mn of ACGB Apr-27 auction.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.