Little Changed, Light Domestic Calendar, RBNZ Policy Decision Tomorrow

ACGBs (YM -1.0 & XM +0.5) remain little changed after dealing in relatively narrow ranges in today’s Sydney session. News flow has been light. There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined Westpac Consumer Sentiment and NAB Business Confidence.

• Cash US tsys are dealing flat to 1bp richer in today’s Asia-Pac session.
• Cash ACGBs are unchanged, with the AU-US 10-year yield differential 3bp wider at -21bps.
• Swap rates are flat to 1bp lower.
• The bills strip is flat to -2.
• RBA-dated OIS pricing is little changed across meetings. A cumulative 29bps of easing is priced by year-end.
• Tomorrow, the local calendar is empty apart from the AOFM’s planned sale of A$800mn of the 4.75% April 2027 bond.
• Tomorrow also sees the RBNZ Policy Decision. We expect it to leave rates again at 5.5% where they have been since May last year. (See MNI Preview here)
• (AFR) Labor’s union-friendly industrial relations laws will cause Australia to fall short of national housing targets for four of the next five years, industry has told the Albanese government, urging fixes to state planning rules and an urgent boost to the skilled workforce. (See link)