Free Trial

Slightly weaker, Pressured by U.S. Tsys


ACGBs sit near session cheaps (YM -3.0 & XM -1.0) ahead of the bell with U.S Tsys pressured in Asia-Pac trade by news of a surprise oil production cut of more than a 1milllion barrels a day by OPEC+. The local data drop today had failed to provide a domestic catalyst for a market that has shifted its focus to tomorrow’s RBA rates decision.

  • Cash ACGBs are 1-2bp cheaper with the 3/10c curve 1bp flatter with the AU-US 10-year yield differential +4bp at -21bp.
  • Swaps are flat to 1bp richer with the 3s10s curve flatter and EFPs 2bp narrower.
  • Bills pricing is 2-3bp weaker across the strip.
  • Ahead of the RBA policy decision tomorrow, RBA dated OIS is 1-4bp firmer for meetings beyond April with a 15% chance of a 25bp hike priced for tomorrow.
  • On the local data front, the Inflation Gauge eased to 5.7% in March from 6.3%, indicating that it likely peaked at 6.4% in January. Building Approvals showed a weaker-than-expected increase of 4.0% M/M (+10.0% expected) in February, while Home Loan data for February surprised on the upside with a fall of 0.9% M/M versus expectations of -1.8%.
  • Further afield, today’s calendar is scheduled to deliver final prints for March Manufacturing PMIs globally along with the ISM Manufacturing Survey.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.