Richer With US Tsys, Light Calendar Until CPI Monthly On Wednesday

ACGBs (YM +4.0 & XM +3.0) are richer after US tsys finished the week on a positive note. The 10-year US tsy yield finished 6bps lower at 4.43%, after first making a fresh 16-year high of 4.5064%. US tsys drew support from mixed Flash PMI data: S&P Global US Manufacturing PMI (48.9 vs. 48.2 est), Services PMI (50.2 vs. 50.7 est), Composite PMI (50.1 vs. 50.4 est). Nevertheless, the 10-year yield ended up 10bps on the week.

• Cash ACGBs have opened 3-4bps richer, with the AU-US 10-year yield differential 2bps higher at -12bps.
• Swap rates are 3bps lower, with EFPs slightly wider.
• Bill strip pricing is +1 to +4, with late whites/reds leading.
• RBA-dated OIS pricing is 2-5bbps softer for ’24 meetings.
• This week the local calendar is light until the release of the CPI Monthly for August on Wednesday. The Monthly CPI lifted 0.3% in July to be 4.9% y/y, a moderation from the 5.4% in June and the recent peak of 8.4% in December. Petrol prices rose close to 8% in August while diesel is up more than 12% so auto fuel will be a meaningful factor.
• Today also sees panel participation by RBA Assistant Governor Jones at a Conference on Financial Technology and Climate Change.