Richer, RBA Gov. Lowe Not To Be Reappointed (ABC)

ACGBs are richer (YM +7.0 & XM +6.5) after US tsy yields finished 4-13bp lower after another soft inflation report by way of PPI data (+0.1% m/m versus +0.2% est). Lower than expected initial jobless claims (237k versus 250k est) had little lasting impact.

• Fed Daly noted that it's too early to declare victory on inflation, she also said she remains in wait-and-see mode.
• ABC News in Australia is reporting this morning that RBA Governor Lowe will not be reappointed. A Cabinet meeting will be held this morning to make a decision on his replacement. After this Treasury Chalmers is expected to make an announcement. (See link).
• Aussie 3yr futures bounced further Thursday, pressing prices to the best level since end-June. This cements a bounce off the recent lows of 95.730, however further progress is needed before any challenge of first resistance of 96.730. For now, the recovery looks corrective, according to MNI's technical team.
• Cash ACGBs opened 6-7bp richer with the AU-US 10-year yield differential +1bp at +22bp.
• Swap rates are 6-8bp lower with the 3s10s curve steeper.
• The bill strip has bull flattened with pricing +1 to +10.
• RBA dated OIS is 4-6bp softer for meetings beyond November.
• The local data calendar is empty today.