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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
While the Australian market has seen its direction dictated by developments in U.S. interest rates in response to the evolving Silicon Valley Bank (SVB) situation over the past few days, it has underperformed the U.S. market dramatically across the curve.
- Looking at STIR expectations for end-23, the US market has seen pricing soften 88bp to 4.68% versus only a 26bp softening in RBA-dated OIS pricing for December. The relative movement in pricing for the next respective policy meeting however is less dramatic (but still significant) with the US -20bp versus -9bp for Australia.
- In the 10-year zone as well the local market has underperformed U.S. Tsys with the AU/US 10-year yield differential +10bp on the day and +14bp from the intraday cycle low of -32bp set late last week.
Figure 1: AU/US 10-Year Yield Differential (%)
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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