Free Trial

Off Lows, Aided By Broader Risk Backdrop

AUSSIE BONDS

The broader risk backdrop, outlined elsewhere, has allowed futures to retrace from worst levels, with YM unch. and XM -1.0 at typing.

  • As we flagged earlier, the Council of Financial Regulators noted that its latest quarterly gathering saw discussions surrounding "possible macroprudential policy responses" re: the domestic housing price situation. The body noted that "over the next couple of months, APRA also plans to publish an information paper on its framework for implementing macroprudential policy." This may have provided some extra pressure to the space in early Sydney dealing, before the bounce from lows on the broader risk tone.
  • The cash ACGB curve has twist steepened around the 5-Year point, with the longer end running ~3bp cheaper on the day at typing. The spill over from Tuesday's move in U.S. Tsys is keeping the 5+-Year zone of the curve underwater.
  • The Australia/U.S. 10-Year yield spread continues to hover around the -5bp mark, with a slight widening bias in play today.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

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.