June 06, 2024 02:01 GMT
Richer But Off Best Levels, US Tsys Cheaper In Asia-Pac Trade
AUSSIE BONDS
ACGBs (YM +3.0 & XM +4.0) are richer and just off Sydney session highs after today’s domestic data drop.
- Home Loan Values rose 4.8% m/m (estimate +1.5%) in April versus a revised +3.8% in March.
- The Trade Surplus widens to A$6.5b in April versus A$4.8bn in March. Exports fell 2.5% m/m, while Imports fell 7.2% m/m.
- Cash US tsys are 1-2bps cheaper in today’s Asia-Pac session after the recent rally extended to day five yesterday following weaker-than-expected ADP Private Employment data.
- Cash ACGBs are 3-4bps richer, with the AU-US 10-year yield differential at -9bps.
- Swap rates are 3-4bps lower.
- The bills strip has bull-flattened, with pricing flat to +3.
- RBA-dated OIS pricing is 1-3bps softer for meetings beyond September. A cumulative 8bps of easing is priced by year-end.
- (AFR) Investors celebrated signs that global interest rates are finally headed lower by pushing the S&P 500 and Nasdaq to record highs, and by elevating US chipmaker Nvidia into the $US3 trillion ($4.5 trillion) club, alongside Apple and Microsoft. (See link)
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