Little Changed, Little Calendar, RBA Gov Speech Tonight

ACGBs (YM +1.0 & XM +1.0) are slightly stronger after an uneventful NY session for US tsys in the lead-up to the Thanksgiving holiday. A poor 10-year TIPS re-opening was largely ignored. US tsys finished with yields 2-3bps lower across benchmarks.

• The FOMC minutes provided no new information. Fed officials believed tighter financial conditions could lessen the need for additional monetary tightening as they decided to hold interest rates steady for the second straight meeting earlier this month. “Financial conditions had tightened significantly in recent months,” the minutes said. “Persistent changes in financial conditions could have implications for the path of monetary policy and it would therefore be important to continue to monitor market developments closely.”
• Cash ACGBs are 1-2bps richer, with the AU-US 10-year yield differential unchanged at +5bps.
• Swap rates are flat to 1bp lower, with the 3s10s curve slightly steeper.
• The bills strip is little changed, with pricing flat to +1.
• RBA-dated OIS pricing is flat to 2bps softer across meetings.
• Today, the local calendar sees the Westpac Leading Index, along with a speech by Governor Bullock at the ABE dinner 1935 AEDT.
• The AOFM also plans to sell A$800mn of the Dec-34 bond.