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Slightly Richer, Narrow Ranges, US ADP Data Due Later Today

AUSSIE BONDS

ACGBs (YM +1.0 & XM +1.0) are slightly richer, after dealing in relatively narrow ranges in today’s Sydney session. With the domestic data calendar light apart from the previously outlined Judo Bank Services & Composite PMI data, local participants appear to have sat on the sidelines ahead of the release of US ADP private employment later today and December employment data on Friday.

  • Cash US tsys are dealing little changed in today's Asia-Pac session as participants digest yesterday’s release of the December FOMC Minutes.
  • (AFR) A multi-month surge in iron ore prices is poised to deliver Treasurer Jim Chalmers as much as $18 billion in extra tax revenue. (See link)
  • Cash ACGBs are 2bps richer, with the AU-US 10-year yield differential 3bps tighter at +10bps.
  • Swap rates are little changed, with EFPs 2-3bps wider.
  • The bills strip is little changed, with pricing flat to -1.
  • RBA-dated OIS pricing is little changed, with 56bps of easing priced by end-2024.
  • Tomorrow, the local calendar is empty.

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