August 29, 2024 06:08 GMT
SocGen: Markets Price RBA Rate Cut Too Soon, Pay Dec ’24 RBA Vs. Receive 2y1y
STIR
Societe Generale like “fading RBA cut pricing for 2024 but keep protection around tail risks via paying December ‘24 RBA vs receiving 2y1y.”
- They argue that “RBA signalling continues to suggest that easing is unlikely this year. Risks from the U.S., reflected in the deep cuts priced into SOFR, plus a cyclical slowdown, are keeping the RBA rate cut pricing elevated.”
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