Free Trial

Subdued Trading, RBA Gov Bullock Speech Later Today

AUSSIE BONDS

ACGBs (YM +2.0 & XM flat) are slightly richer after dealing with relatively narrow ranges in the Sydney session. Given the light domestic calendar and the fact that US tsys are in a pre-Thanksgiving mode, the overall trading activity has been subdued.

  • Cash US tsys are 1-3bps cheaper in the Asia-Pac session after yesterday’s modest gains. The release of the FOMC minutes yesterday provided no new information, with the report reaffirming the higher-for-longer stance. There was little market reaction. The US calendar later today sees Initial Jobless Claims and the UofMich Consumer Sentiment Survey.
  • The latest round of ACGB Dec-34 supply showed mixed demand metrics. It printed 1.0bp through prevailing mids but the cover ratio moved lower and the number of overall and successful bidders dropped substantially.
  • Cash ACGBs are flat to 2bps richer, with the AU-US 10-year yield differential 3bps lower at +3bps.
  • Swap rates are flat to 2bps lower, with the 3s10s curve steeper.
  • The bills strip is little changed, with pricing -1 to +1.
  • RBA-dated OIS pricing is +/- 1bp softer across meetings.
  • RBA Governor Bullock will deliver a speech at the ABE dinner at 1935 AEDT today.
  • Tomorrow, the local calendar sees Judo Bank PMIs (preliminary) for November.

To read the full story

Close

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.