Slightly Richer, Narrow Ranges Ahead Of US Payrolls

ACGBs (YM +2.0 & XM +1.0) are little changed after dealing in relatively narrow ranges in the Sydney session. With the domestic calendar empty, today’s session has been your typical pre-US payrolls session. US Non-Farm Payrolls is due later today.

• Bloomberg consensus sees payrolls growth of 200k for February, but two-month revisions will likely be closely watched. Please find the MNI's Preview here.
• (MNI) The BoC left its overnight rate at 5% and said it’s still too early to consider lowering the policy rate. (See MNI’s BoC Review here)
• Cash US tsys are dealing little changed in today’s Asia-Pac session after yesterday’s bull-steepening. News flow has been light today.
• Cash ACGBs are 1-2bps richer, with the AU-US 10-year yield differential 2bps higher at -9bps.
• Swap rates are 2bps lower.
• Bills strip pricing is flat to +2.
• RBA-dated OIS pricing is flat to 2bps softer across meetings. A cumulative 44bps of easing is priced by year-end.
• The local calendar is empty on Monday.
• TCorp has priced a new A$2.5bn 4.75% 20 Feb-37 benchmark bond via syndication. The final price for the transaction is 90.50bps over the 10-year bond futures contract, equivalent to 79.20bps over the ACGB 3.75% 21 April 2037. Joint lead managers for the transaction are BofA Securities, Deutsche Bank, NAB and Westpac.