Richer, Subdued Session, Pre-Thanksgiving Mood, Gov Bullock Speech Later Today

ACGBs (YM +2.0 & XM +1.0) are richer and just off session highs in a relatively subdued trading session. With the domestic calendar light and US tsys in a pre-thanksgiving mood, trading ranges have been narrow.

• Cash US tsys are slightly cheaper in the Asia-Pac session after yesterday’s modest gains. The release of the FOMC minutes yesterday provided no new information, with the report reaffirming the higher-for-longer stance. There was little market reaction. The US calendar later today sees Initial Jobless Claims and the UofMich Consumer Sentiment Survey.
• Expectations of sustained strong pricing at today’s ACGB auction proved accurate, with the latest round of ACGB Dec-34 supply printing 1.01bp through prevailing mids. However, the cover ratio moved lower to 3.3750x from 4.2014x at the 9 September auction and the number of overall and successful bidders dropped substantially.
• Westpac Leading Index showed a 6-month annualised growth rate of -0.4% in October.
• RBA Governor Bullock will deliver a speech at the ABE dinner at 1935 AEDT today.
• Cash ACGBs are 1-3bps richer, with the AU-US 10-year yield differential 2bps lower at +3bps.
• Swap rates are flat to 2bps lower, with the 3s10s curve steeper.
• The bills strip is little changed, with pricing flat to +1.
• RBA-dated OIS pricing is flat to 2bps softer across meetings.