Richer With US Tsys, RBA Gov Bullock Panel Appearance & Retail Sales Highlight Today

ACGBs (YM +8.0 & XM +8.0) are richer after US tsys enjoyed a strong NY session after returning from the Thanksgiving long weekend. US tsys finished with yields close to or at session highs, 7-8bps lower across benchmarks. Ongoing expectations that central banks are done hiking rates continued to underpin a positive tone globally. A strong rally in European government bonds spilled over and boosted US tsys from the open. Softer than expected lower tier data in new home sales and Dallas Fed manufacturing activity were also supportive.

• US equities were quiet, despite reports of record Black Friday spending along with expectations for a strong Cyber Monday. The indexes ended with small losses after last week's large gains.
• Cash ACGBs are 8bps richer, with the AU-US 10-year yield differential 4bps wider at +10bps.
• Swap rates are 7-9bps lower, with EFPs slightly tighter.
• The bills strip has bull-flattened, with pricing flat to +9.
• RBA-dated OIS pricing is flat to 7bps softer across meetings, with Feb’25 leading.
• RBA Governor Bullock participates in a panel at the HKMA-BIS conference at 1218 AEDT today (the event can be watched here). October retail sales are also out today and are forecast to show a slight increase of 0.1% m/m after September’s strong 0.9%.