Richer After US10YY Rejects 5%, RBA Gov Bullock Speech Tonight

ACGBs (YM +3.0 & XM +6.5) are richer after the US 10-year tsy yield broke through the 5% mark for the first time since 2007, reaching 5.02% before reversing sharply to 4.85%. The yield curve flattened with the 2-year rate finishing 3bps richer at 5.05%.

• Pershing Square fund manager/CEO Bill Ackman tweeted he had covered shorts in US tsys in light of "too much risk in the world to remain short."
• Cash ACGBs are 4-7bps richer, with the AU-US 10-year yield differential 5bps higher at -14bps.
• Swap rates are 4-6bps higher, with the 3s10s curve steeper.
• The bills strip has bull-flattened, with pricing +1 to +6.
• RBA-dated OIS pricing is 2-6bps softer across ’24 meetings.
• Preliminary October Judo Bank PMI data prints lower across manufacturing, services and the composite.
• Later today RBA Governor Bullock will speak on “Monetary Policy in Australia: Complementarities and Trade-offs” at 1900 AEDT. This event could be an opportunity to set out her thinking about the outlook or the framework for policy, given it is her first set-piece speech since becoming Governor. Q3 CPI data is due for release tomorrow.
• Moody's has affirmed the senior unsecured debt ratings of the NSW TCorp at Aaa and maintained the stable outlook.