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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessRicher But Off Best Levels, US PPI Due Later Today
ACGBs (YM +5.0 & XM +3.0) remain richer but are off Sydney session highs.
- With the domestic calendar empty, the local market has drifted lower in line with the ~2bp cheapening in cash US tsys in today’s Asia-Pac session. In the absence of news flow, this weakening most likely reflects some profit-taking after yesterday’s solid rally.
- The market’s focus is today’s June PPI and UofM Sentiment and the start of the latest equity earnings cycle: Wells Fargo, Bank of NY Mellon, JP Morgan and Citigroup headlining.
- Cash ACGBs are 3-5bps richer, with the AU-US 10-year yield differential at +11bps.
- Today’s ACGB Nov-29 supply was priced comfortably through mids. However, the cover ratio declined to 3.100x from 3.2286x prior.
- Swap rates are 3-5bps lower.
- The bills strip has bull-flattened, with pricing +2 to +6.
- RBA-dated OIS pricing is 3-7bps softer for meetings beyond August. Terminal rate expectations decline 3bps to 4.42%.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.