Free Trial

Little Changed Ahead Of Q2 CPI Tomorrow

AUSSIE BONDS

ACGBs are little changed (YM flat & XM +1.5) in the Sydney session ahead of tomorrow’s release of Q2 CPI. There has been little by way of domestic drivers today as local participants digest news surrounding China’s July Politburo meeting.

  • US tsys are dealing 1-2bp richer across the major benchmarks in Tuesday's trade following yesterday's flow-induced bear flattening as several large block trades weighed in the NY session.
  • Cash ACGBs are flat to 1bp richer with the AU-US 10-year yield differential -5bp at +12bp.
  • Swap rates are flat to 1bp lower.
  • The bills strip twist steepens with pricing +1 to -3.
  • RBA-dated OIS pricing is flat to 2bp softer across meetings with a 58% chance of a 25bp hike priced for August.
  • Australian consumer confidence climbed last week amid increasing speculation that the Reserve Bank of Australia's record-breaking increase in the official cash rate over the last year is close to ending. Consumer confidence rose by 2.6% over the week, with renters leading the recovery in sentiment. (See link)

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.