Richer, US Tsys Rally For Fourth Day, RBA Bullock In Senate

ACGBs (YM +6.0 & XM +8.0) are richer with RBA Governor Bullock testifying in front of the Senate Economics Legislation Committee. The testimony can be watched at this link.

• Overnight, US tsys delivered another strong session following weaker-than-expected US JOLTS data. JOLTS Job Openings printed 8.059M vs. 8.350M est and 8.488M prior. The result was the lowest since Feb 2021.
• Meanwhile, Factory Orders were a little stronger (0.7% vs. 0.6% est, 0.8% prior rev), Ex Transportation (0.7% vs. 0.5% est, 0.4% prior rev).
• US late-year rate cut projections continued to gain vs. late Monday levels: Sep'24 cumulative -19.3bps (-17.2bps), Nov'24 cumulative -27.8bps (-25.3bps), Dec'24 -44.3bps (-40.6bps).
• US tsys were also supported by oil prices, which were down around 1% following the 4% tumble on Monday following OPEC+’s plans to loosen its production curbs as early as October.
• Cash ACGBs are 8-9bps richer, with the AU-US 10-year yield differential at -11bps.
• Swap rates are 8-9bps lower.
• The bills strip has bull-flattened, with pricing +1 to +9.
• RBA-dated OIS pricing has also bull-flattened. A cumulative 9bps of easing is priced by year-end.
• May’s Judo Bank PMIs printed: Composite fell to 52.1 from 53 in April, and Services fell to 52.5 from 53.6 in April.
• Today, the local calendar will also see Q1 GDP.