Slightly Richer After A Mixed Domestic Data Drop

ACGBs (YM +2.0 & XM +3.0) are holding slightly firmer going into the Easter long weekend. Today’s mixed result domestic data drop (Retail Sales, Consumer Inflation Expectations, Private Sector Credit and Job Vacancies) failed to be a market mover.

• (AFR) There is a lot of complaining about the Reserve Bank of Australia’s 13 interest rate rises. But remarkably, there is little serious financial stress among mortgage holders after more than 4 percentage points of cash rate rises since May 2022. (See link)
• Today’s came despite cash US tsys cheapening 1-5bps in today’s Asia-Pac session following aftermarket comments from the Federal Reserve Governor Waller.
• Fed Waller said the Fed should wait a "couple months" to get a better understanding of the trajectory of inflation. (See MNI link)
• Cash ACGBs are 2-3bps richer, with the AU-US 10-year yield differential unchanged at -24bps.
• Swap rates are 2-3bps lower.
• Bills are slightly mixed across the strip.
• RBA-dated OIS pricing is slightly mixed across meetings. A cumulative 38bps of easing is priced by year-end.
• The local market is closed until next Tuesday for the Easter long weekend.
• Later today, the US calendar sees Weekly Claims, GDP, PCE, PMI and UofM Sentiment.