Richer, At Sydney Session Bests, Tracking US Tsys

ACGBs (YM +9.0 & XM +9.5) sit richer and at Sydney session highs. There hasn’t been much in the way of domestic drivers to flag, outside of the previously outlined August trade balance. Considering that, the local market appears to have been guided by US tsys.

• Cash US tsys are flat to 3bps richer across benchmarks in the Asia-Pac session, with the curve steeper, as local participants extend the post-ADP employment data bull-steepening seen in yesterday's NY session.
• Cash ACGBs are 9-10bps richer, with the AU-US 10-year yield differential 3bps higher at -14bps.
• Swap rates are 6bps lower, with EFPs 2-4bps wider.
• The bills strip has bull flattened, with pricing +2 to +8.
• RBA-dated OIS pricing is 3-12bps softer across meetings beyond November, with Dec’24 leading. Terminal rate expectations have softened 5bps to 4.29%.
• Tomorrow the local calendar sees the release of the RBA’s Financial Stability Report.