Free Trial
POLAND

NBP To Announce Rate Decision In 10 Minutes

MNI EXCLUSIVE

Interview With Richmond Fed President Barkin

US TSYS/SUPPLY

Preview 10Y Note Auction

US EURODLR FUTURES

BLOCK, Red Pack

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
STIR

Late on Thursday RBC noted that “while market pricing for RBA terminal remains elevated around 3.55% by February, it remains elevated for the rest of 2023 with only modest easing anticipated. The combination of more aggressive central banks and increasing risk of recession in a number of major economies should see the local market begin to price in more unwind of the 2022 hikes later in 2023.”

  • “We opt to express front end inversion via a box trade, boxing an AU Dec22/Dec23 bills flattener (IRZ2/Z3) against a U.S. Eurodollar Dec22/Dec23 steepener (EDZ2/Z3). We choose to express the trade on a cross-market basis, as the U.S. curve has seen a significantly earlier and sharper inversion than the AU curve leaving the box spread between the two money market curves wide compared to levels seen at the start of the year. We see considerable scope for the Australian money market curve to move to catch up to the inversion already seen in the U.S.”
  • “We enter the trade at 71.7bp, targeting flat and with a stop loss set at 110bp.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.