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AUSSIE BONDS: Slightly Richer Ahead Of US PPI Data

AUSSIE BONDS

ACGBs (YM +1.0 & XM +1.5) are slightly stronger on a data-light session. 

  • Outside of the previously outlined Westpac consumer confidence, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are ~1bp richer in today’s Asia-Pac session after yesterday’s modest sell-off. US PPI data will be released later today, ahead of CPI data tomorrow.
  • Cash ACGBs are 1-2bps richer with the AU-US 10-year yield differential at -15bps.
  • Swap rates are 1-2bps lower.
  • The bills strip is little changed.
  • RBA-dated OIS pricing is little changed across meetings today. A 25bp rate cut is fully priced for April (102%), with the probability of a February cut at 68% (based on an effective cash rate of 4.34%).
  • Tomorrow, the local calendar is empty.
  • AOFM Bond issuance will resume this week, with A$800mn of the 3.50% 21 December 2034 bond to be sold tomorrow and A$700mn of the 2.75% 21 November 2027 bond to be sold on Friday. 
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ACGBs (YM +1.0 & XM +1.5) are slightly stronger on a data-light session. 

  • Outside of the previously outlined Westpac consumer confidence, there hasn't been much by way of domestic drivers to flag.
  • Cash US tsys are ~1bp richer in today’s Asia-Pac session after yesterday’s modest sell-off. US PPI data will be released later today, ahead of CPI data tomorrow.
  • Cash ACGBs are 1-2bps richer with the AU-US 10-year yield differential at -15bps.
  • Swap rates are 1-2bps lower.
  • The bills strip is little changed.
  • RBA-dated OIS pricing is little changed across meetings today. A 25bp rate cut is fully priced for April (102%), with the probability of a February cut at 68% (based on an effective cash rate of 4.34%).
  • Tomorrow, the local calendar is empty.
  • AOFM Bond issuance will resume this week, with A$800mn of the 3.50% 21 December 2034 bond to be sold tomorrow and A$700mn of the 2.75% 21 November 2027 bond to be sold on Friday.