Trial now
US TSYS

Omicron Worry Dominates

AUSSIE 10-YEAR TECHS

(Z1) Shallow Bounce

NZD

Omicron In Driving Seat

AUSSIE 3-YEAR TECHS

(Z1) Neutral at Higher Levels

US TSYS

Late Rate Rally, Risk-Off as Omicron Comes to US

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

  • Local & USD rates trade slightly weaker around the open, following on from Friday's post-CBR sell-off with the bank delivering a +75bp hike vs a split consensus for +25-50bp.
  • Here, inflation remains a persistent risk with the CBR sounding gravely concerned about the now higher year end trajectory for CPI (7.4-7.9% y/y).
  • W/w the OFZ curve stands +33-40bp bear flatter in 2-5Y yields – in line with the larger than expected hike with pressure likely to persist as markets anticipate the tightening bias to continue into the December meeting.
  • 3x6 FRA-Mosprime spreads no stand at +126bp, with markets seeming overtly pessimistic about the Bank's ability to accurately telegraph runaway CPI pressures.
  • OFZ Curve Change w/w