Richer, Eyeing US Tsys In A Data-Light Session

ACGBs (YM +4.0 & XM +4.6) remain slightly richer after dealing in narrow ranges through today’s data-light Sydney session. After Friday’s pushback by Fed officials against market expectations for early and aggressive easing in 2024, local participants have likely sought directional guidance from recent dealing in US tsys.

• Narrow ranges are persisting in early trade on Monday for cash US tsys. The early move lower has not followed through, with little meaningful macro newsflow crossing. This leaves cash tsys flat to 2bps cheaper, with a light steepening apparent.
• Cash ACGBs are 4-5bps richer, with the AU-US 10-year yield differential 2bps tighter at +17bps.
• Swap rates are 4-6bps lower, with the 3s10s curve flatter.
• The bills strip shows a bull-flattening, with pricing +1 to +5.
• RBA-dated OIS pricing is 1-6bps softer across meetings, with 55bps of easing priced by Dec’24.
• RBA Minutes for the December Meeting are due tomorrow.