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The Prospect Of Negative BBSW


YM unchanged, XM -0.5, with focus falling on comments from RBA Assistant Governor Kent. The most notable of which saw him state that a move into -ve territory for BBSW would not be unexpected in the case of further monetary easing. This supported the Bill space, which last sits +1-3 through the reds, with a flurry of lifts seen on the comments. It also provided a bid for the ACGB space, although that particular move subsequently faded back from richest levels.

  • The minutes from the RBA's October meeting were released, and didn't really include any shocks, fleshing out the thought process outlined by Governor Lowe in last week's address re: further easing, providing the rubber stamp for the majority of the sell side's calls for deeper easing to be enacted in November in the process.
  • The latest round of payrolls data revealed a slight downtick in the number of people working in the latest fortnight covered by the data, while total wages fell over the same period.
  • Finally, S&P affirmed Australia at AAA; Outlook Negative.
  • Prelim retail sales data and A$2.0bn worth of ACGB 1.00% 21 December 2030 supply headline tomorrow's local docket.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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