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Overnight Lows Hold

AUSSIE BONDS

Aussie bond futures consolidate in the lower end of the range observed since Tuesday’s Sydney close, with YM -5.0 & XM -6.5, this comes after both contracts tested their respective overnight bases, which held. Meanwhile, wider cash ACGBs sit 4.5-6.5bp cheaper. Bills run 2-6bp cheaper through the reds, while RBA dated OIS continues to operate around levels flagged earlier on (~20bp of tightening showing for next month, alongside a terminal cash rate of 3.95-4.00%).

  • Local issuance matters have provided the only real domestic points of note, with ACGB Nov-33 supply passing smoothly (see our post-auction bullet for more on that), while the semi side saw SAFA launch a new May-38 line (as much as A$1bn issued this time around), which is set to price on Thursday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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