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Pressure From Across The Tasman

AUSSIE BONDS

Aussie bonds traded on the defensive, adding to overnight weakness, even with a strong ACGB tender and DV01-light weekly issuance slate from the AOFM becoming apparent.

  • There appeared to be some spill over from across the ditch with the NZGB space seeing some cheapening on the back of firmer than expected NZ CPI data and heavy offer/cover ratios in the latest round of RBNZ NZGB purchases.
  • YM -1.0, XM -6.0 at the bell, with the cash curve steepening and swap spreads unchanged to narrower across the curve.
  • A$ supply saw IADB price $A300mn of Aug '28 paper.
  • Q4 CPI and the monthly NAB business confidence reading headline the local docket next week, which will of course be shortened as a result of the Australia Day holiday.
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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