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COMMODITIES

Crude Bounces, But Well Shy of Friday Highs

PIPELINE

November Corporate Debt Issuance Over $120B

US TSY OPTIONS

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Futures saw a parallel shift in overnight trade, with YM & XM both finishing 4.0 above Sydney settlement levels, even as the U.S. Tsy curve twist steepened. It will be interesting to watch the local reaction to that dynamic, especially after Wednesday's Sydney session seemed to lure in some relative value demand for ACGBs as the AU/U.S. 10-Year year yield spread briefly threatened to break above 20bp (a touted area of interest for Aussie 10s on the part of several sell side names).

  • Looking ahead to Thursday's local docket, the Q3 NAB business survey and latest round of scheduled ACGB purchases from the RBA are due. Re: the latter some still point to the potential for the RBA to step in a reinforce its 0.10% ACGB Apr-24 yield target today (the line finished Wednesday's session at 0.1525%), although Tuesday's late move from the RBA (when it hiked borrowing costs for the bonds relevant to enforcing the target) reduces the odds of such a move. Weekly ABS payrolls data will also hit.