September 29, 2022 05:31 GMT
Aussie bond futures stuck within the upper end of their respective overnight ranges during Sydney hours, with XM failing to force a break through its overnight peak on a re-test, while YM fell short of challenging its own post-Sydney high.
- Participants shrugged off the domestic monthly CPI print, even with underlying inflation clearing the 6.0% Y/Y level in August (the RBA currently looks for underlying inflation to hit 6.0% in Q422), while the headline print eased a touch, back to 6.8 Y/Y vs. the 7.0% seen in July.
- Elsewhere, we also saw a 2.1% fall in the job vacancies print (which is measured in Q/Q terms), accompanied by an upward revision to the prior print.
- YM +14.0 & XM +19.0 last, back from their respective session highs, with the major cash ACGB benchmarks running 11-19bp richer on the session. 10s outperformed all day as the space played catch up to Wednesday’s BoE-driven bid in futures/wider core global FI markets.
- Bills run 2-16bp richer through the reds.
- Friday will see A$700mn of ACGB Nov-28 auctioned by the AOFM, as well as the release of the AOFM’s weekly issuance slate and private sector credit data.