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Why MNI
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.
AUSSIE BONDS
ACGBs remain richer on the day (YM +24.8 & XM +10.3) but pare back morning gains in line with softer U.S. Tsys in Asia-Pac trade and stronger-than-expected employment data (+64.4k Vs. +50k expected and 3.5% unemployment rate Vs. 3.6% expected). U.S. Tsys have been pressured in Asia-Pac trade by reports that Credit Suisse was taking action to strengthen liquidity.
- Cash ACGBs are 10-23bp stronger with the 3/10 curve +13bp.
- AU/US 10-year yield differential +8bp at -16bp.
- Swaps are 8-23bp richer but 3-5bp off session bests. EFPs wider.
- Bills strip is 19-40bp richer led by whites.
- Today’s strong employment data along with the robust NAB Business Survey should have encouraged the market to price another 25bp hike from the RBA in April given these releases were explicitly cited as important inputs to the policy decision. Nonetheless, with global banking concerns front and centre, RBA-dated OIS has continued to price an end to the tightening cycle. April meeting pricing remains at -3bp with 38bp of easing priced by year-end.
- With no local data slated until next week, the market will remain transfixed on banking crisis headlines. With the focus, at least temporarily, shifting to European banks, all eyes will be on the ECB policy decision tonight (BBG consensus expects a 50bp hike).
Figure 1: RBA Cash Rate & RBA Dated OIS Pricing
Source: MNI – Market News / Bloomberg
Why MNI
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.
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