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Narrow Ranges During A Data-Light Session, RBA Minutes Tomorrow

AUSSIE BONDS

ACGBs (YM -1.0 & XM -0.5) are slightly weaker, with tight ranges, in a data-light Sydney session.

  • It is a relatively light week for local data/news flow, with tomorrow’s release of the RBA’s August 6 meeting minutes the highlight. With the statement and Governor Bullock sounding slightly more hawkish, the minutes will be scrutinised, especially around the rate hike discussion to determine how serious it was. Upside risks to inflation will be another area of focus.
  • Cash US tsys are slightly mixed, with a flattening bias, in today’s Asia-Pac session after modest gains on Friday.
  • Attention now turns to the KC Fed-hosted Jackson Hole economic symposium "Reassessing the Effectiveness and Transmission of Monetary Policy," which will be held Aug. 22-24. Fed Chairman Powell speaks at 1000ET Friday Morning.
  • Cash ACGBs are flat to 1bp cheaper, with the AU-US 10-year yield differential at +5bps.
  • Swap rates are flat.
  • The bills strip has bear-flattened, with pricing flat to -2.
  • RBA-dated OIS pricing is little changed. A cumulative 18bps of easing is priced by year-end.
  • The AOFM plans to sell A$800mn of the 3.00% 21 November 2033 bond on Wednesday and A$700mn of the 2.75% 21 November 2028 bond on Friday.

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