Sitting Slightly Richer, Launch Of New TCorp Feb-37 Bond

ACGBs (YM flat & XM +1.5) are sitting slightly richer following today’s data drop. Dealings have been contained in relatively narrow ranges so far in today’s Sydney session.

• Home Loan Values fell 3.9% m/m (estimate +2.0%) in January versus -4.1% in December. Meanwhile, the Trade Surplus widened to A$11.027b (estimate +A$11.500b) in January from a revised +A$10.743b in December.
• Cash US tsys are ~1bp cheaper in today’s Asia-Pac session after yesterday’s post-Powell bull-flattening.
• Cash ACGBs are flat to 2bps richer, with the AU-US 10-year yield differential 2bps higher at -12bps.
• Swap rates are flat to 2bps lower, with the 3s10s curve flatter.
• The bills strip is little changed.
• RBA-dated OIS pricing is unchanged across meetings. A cumulative 43bps of easing is priced by year-end.
• NSW TCorp has launched a new 4.75% 20 February 2037 benchmark bond via syndication. Indicative price guidance for the transaction is 90.50-93.50 basis points over the 10Y bond futures contract, equivalent to 79.25-82.25 basis points over the ACGB 3.75% 21 April 2037. Pricing is expected on or before 8 March 2024. Joint lead managers for the transaction are BofA Securities, Deutsche Bank, NAB and Westpac.