Little Changed As Equity Market Weakness Moves Market Away From Cheaps

ACGBs (YM flat & XM +1.0) are lightly richer and well off the worst levels after another session of largely directionless dealings. With the domestic calendar light and cash US tsys little changed in today’s Asia-Pac session, the local market has seen relatively narrow ranges.

• Outside of the previously outlined Judo Bank PMIs, there hasn't been much in the way of domestic drivers to flag.
• Accordingly, the move away from session cheaps appears to be tied to equity weakness in today’s Asia-Pac session.
• The AOFM announced that the issue by syndication of the new 4.25% 21 December 2035 Treasury Bond has been priced at a yield to maturity of 4.425 per cent. The issue size is $11.5 billion in face value terms. There was a total of $56 billion of bids at the final clearing price.
• Cash ACGBs are flat to 1bp richer, with the AU-US 10-year yield differential at +9bps.
• Swap rates are 1bp higher, with EFPs wider.
• The bill strip pricing is flat to -1.
• RBA-dated OIS pricing is little changed. Terminal rate expectations sit at 4.42%.
• Tomorrow, the local calendar is empty.