Free Trial

Little Changed As US Tsys Await Payrolls Data, Housing Finance Data Due


ACGBs (YM +1.0 & XM +2.5) are little changed after a subdued NY session for US tsys. US tsy yields finished 1-2bps lower across the major benchmarks, with the wings marginally outperforming. Us tsys observed narrow ranges. The proximity to today's Non-Farm Payrolls data perhaps limited activity in the space. The latest round of US data printed broadly in line, with the core PCE deflator at +4.2% y/y versus +4.1% previously.

  • Cash ACGBs opened 1-2bp richer, with the AU-US 10-year yield differential 4bp lower at -11bp.
  • Swap rates are 2bp lower.
  • The bills strip is little changed, with pricing flat to +2.
  • RBA-dated OIS pricing is little changed.
  • Australia’s home prices rose 1% m/m (-0.1% y/y) in August, according to the CoreLogic Home Value Index. Sydney +1.1% m/m, +1.2% y/y; Melbourne +0.5% m/m, -2.3% y/y; and Brisbane +1.5% m/m, -3% y/y.
  • The CoreLogic report also showed the national rental index climbed 0.5%, a 36th straight monthly increase. The index is up 9% y/y in August, almost three times the decade average.
  • Bloomberg reports that Australia’s housing market momentum accelerated in August as demand from a growing population vacuumed up new supply. (See link)
  • Today the local calendar sees Housing Finance data for July.
  • Elsewhere, China's Caixin Mfg PMI highlights in the Asia session.

To read the full story



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.