MNI: ### X-ccy basis eyed a little earlier than......>

MNI: ### X-ccy basis eyed a little earlier than usual

- Just worth flagging that shorter dated AUD/USD x-ccy basis swaps have been

pressured today, RBA rate cut speculation is an easy catalyst to point to, along

with recent stimulatory measures providing AUD cash, but the recent gyrations in

the U.S. repo markets & well documented U.S. funding stresses are likely playing

a part here.

- NY Fed repo operations have been oversubscribed for the last couple of days

and another round is set to be held tomorrow (Tuesday's take up was around ~70%

of what was on offer, but was announced shortly before the operations were

conducted, with some technical hitches hindering the ops).

- The lack of colour surrounding a standing repo facility at the Fed's most

recent MonPol decision may also be filtering into these moves.

- USD/JPY 3-Month basis took a hit yesterday, but is more stable today.

- Also worth remembering that we are moving towards the end of Q3, with the end

of September often seeing a scramble for USD liquidity at the end of the

calendar year, which can & often does pressure x-ccy basis.