Richer But Off Best Levels, US Tsys As Oil Spikes On Yemen Attacks

ACGBs (YM +6.0 & XM +4.0) are richer but off the Sydney session’s best levels after the domestic data drop.

• The value of new loan commitments for housing rose 1.0% from a month earlier in November versus an estimate of 1.3%. The value of investment lending was +1.9% m/m.
• The shift away from session highs seems to be more closely tied to US tsys activities during today's Asia-Pacific session. Benchmark yields are trading 1-2bps higher. This movement could potentially be a reaction to the impact of oil prices following US missile strikes in response to Houthi attacks
• Cash ACGBs are 5-6bps richer, with the AU-US 10-year yield differential unchanged at +9bps.
• Swap rates are 4-6bps lower, approximately 3bps higher than the session lows.
• The bills strip has maintained its bull-flattened, with pricing +1 to +8.
• RBA-dated OIS pricing is 3-6bps softer for meetings beyond May.